2024-10-10 23:55:09
Economy
Finance
Government

France Unveils Austerity Measures Amid Budget Crisis

Image courtesy of : AFP (ALAIN JOCARD)

The French government has introduced a stringent budget plan for 2025, targeting a deficit reduction through significant public spending cuts and tax hikes. Aiming to save 60 billion euros, the plan includes 2,200 job cuts predominantly in education and substantial reductions in the Ministry of Sports, justified by the end of the Olympic Games.

In a bid to mitigate the financial crunch, the plan proposes "exceptional and temporary" tax increases on the wealthy and large corporations. Furthermore, new levies on aviation and energy are anticipated. Prime Minister Michel Barnier may invoke the controversial Article 49.3 of the French Constitution to pass the budget without parliamentary approval.

Finance Minister Antoine Armand highlights the unprecedented nature of the fiscal challenges, emphasizing the critical state of France's public debt. The nation's deficit has soared to 6.1% of GDP, with debt surpassing 110% of GDP.

Despite the austerity measures, the government pledges to bolster sovereignty and security, with increased funding for the Justice and Armed Forces sectors. However, these plans face criticism from both political spectrums and within the government itself, raising concerns over potential social unrest.

Under pressure from financial markets and the European Union, France aims to present a credible consolidation plan to Brussels. Yet, the High Council for Public Finances regards the plan as overly optimistic. As France navigates this fiscal storm, the government is tasked with balancing austerity with the imperative to maintain social and political stability.

Frankfurter Rundschau
10. Oktober 2024 um 17:02

This EU country is reintroducing a wealth tax: Exodus of the wealthy feared

Politics
Economy
France is reintroducing a wealth tax to reduce the budget deficit; the abolition of the wealth tax in 2017 was intended to end the exodus of the rich.
New York Times - Business
10. Oktober 2024 um 19:09

France Unveils Tough Austerity Budget to Mend Its Finances

Politics
Economy
Finance
The French government unveiled an austerity program to address a growing financial crunch, focusing on deep spending cuts and hefty one-off taxes primarily targeting the rich and big corporations. Prime Minister Michel Barnier announced plans to save 60 billion euros in the next year, as France faces one of the worst deficit and debt burdens in Europe. The deficit surged to 6.1 percent of GDP, while the debt skyrocketed to over €3.2 trillion, exceeding 110 percent of GDP. Barnier aims for €110..
n-tv.de
10. Oktober 2024 um 19:51

Austerity budget against high deficit: French government cuts budget by 60 billion - n-tv.de

Politics
Economy
Finance
The new center-right government of France under Prime Minister Michel Barnier is launching an austerity budget with 60 billion euros in savings to reduce the high government deficit to below 3% by 2029. One third of the savings is to be achieved through tax increases on companies and high-income households. The austerity budget is facing resistance from the left-wing camp and the right-wing nationalists in parliament, and some government members are also dissatisfied. Since the government does..
EuroNews
10. Oktober 2024 um 19:00

French government reveals unprecedented cuts in public spending and tax increases for 2025

Economy
Politics
Finance
The French government has presented a budget plan for 2025 with cuts of 60 billion euros (2% of GDP) in public spending, including 2,200 job cuts, mainly in the education sector. There will also be "exceptional and temporary" tax increases on the wealthiest and large companies, as well as new taxes on aviation and energy.
CW

Account

Waiting list for the personalized area


Welcome!

InfoBud.news

infobud.news is an AI-driven news aggregator that simplifies global news, offering customizable feeds in all languages for tailored insights into tech, finance, politics, and more. It provides precise, relevant news updates, overcoming conventional search tool limitations. Due to the diversity of news sources, it provides precise and relevant news updates, focusing entirely on the facts without influencing opinion. Read moreExpand

Your World, Tailored News: Navigate The News Jungle With AI-Powered Precision!