In a bid to address France's growing public deficit, François Villeroy de Galhau, Governor of the Bank of France, has called for a reconsideration of tax policies, particularly targeting large corporations and wealthy individuals.

With the public deficit expected to exceed 5% of GDP in 2024, Villeroy de Galhau suggests a balanced approach of reducing public spending and implementing temporary tax increases to bring the deficit below the 3% threshold mandated by the Maastricht Treaty.

He emphasizes that middle-class citizens and small to medium enterprises should be spared from these tax hikes.

Meanwhile, newly appointed Prime Minister Michel Barnier is also contemplating tax increases, despite resistance from President Macron's camp, which opposes any rise in taxation.

The political climate remains tense as discussions continue on how to manage the fiscal challenges without stifling economic growth.