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France News Today

French news in English

Thursday, November 14, 2024

France Targets Public Spending Cuts

Published: 2024-10-27

The French government is under pressure to reduce its public deficit, aiming to bring it down to 5% of GDP by 2025. To achieve this, a comprehensive budget plan has been unveiled, detailing 60 billion euros in fiscal adjustments.

This includes 20 billion euros in increased revenues and 40 billion euros in spending cuts.

A significant portion of these cuts will target public sector absenteeism, with new measures proposed to reduce sick leave costs.

Additionally, the government plans to increase taxes on large corporations to boost revenue.

The budget proposal has sparked controversy, particularly among public sector unions, as it suggests reducing pay for the initial days of sick leave.

The plan is part of a broader strategy to align with EU fiscal requirements, aiming for a gradual deficit reduction over the next several years.