France Unveils Austerity Measures Amid Budget Crisis

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.