Logo

France News Today

French news in English

Thursday, October 17, 2024

France's Budget Battle: Austerity vs. Reform

Published: 2024-10-10

In a bold move, France's left-wing alliance unveiled ten key budgetary measures aimed at revitalizing the nation's economy, just a day before the government's official budget presentation.

These proposals, crafted with input from economist Lucie Castets, seek to generate €49 billion without increasing taxes on the middle and lower classes.

The strategy includes eliminating certain tax breaks, reinstating the wealth tax, and taxing large inheritances and financial transactions.

Meanwhile, Prime Minister Michel Barnier is set to present a budget focused on austerity, targeting €60 billion in savings through a mix of spending cuts and tax increases.

This approach aims to address France's soaring debt, which exceeds €3 trillion.

The political landscape is tense, with opposition parties poised to challenge the government's fiscal plans, potentially leading to significant political maneuvering in the coming weeks.