France is facing one of its worst public deficits in modern history, with the deficit expected to reach 5.6 percent of national output this year. To tackle this financial crisis, newly-appointed finance minister Antoine Armand is considering implementing new taxes on the wealthy and large businesses.
In an effort to reduce government overspending, Armand plans to work with economic actors and is open to discussions with unions and bosses’ organizations. The conservative Prime Minister Michel Barnier’s government faces challenges in passing a 2025 budget through the divided National Assembly.
Unlike the previous policy of reducing taxes, the government is now considering targeted tax rises on wealthy individuals and large companies to improve public finances. However, the focus remains on sparing working people and the middle class from heavier tax burdens.
Armand emphasized the importance of not hindering economic growth and job creation with tax increases. The government aims to ensure that those with substantial wealth contribute more to address the current financial situation.