New French PM vows ‘targeted tax hikes’ and spending cuts to tackle budget deficit and national debt
France’s new Prime Minister, Michel Barnier, has wasted no time laying out his government’s agenda in a bid to stabilize the country’s precarious financial situation just weeks into his tenure. In his inaugural policy speech, Barnier emphasized the urgent need to slash the budget deficit and reduce the national debt through a mixture of elevated taxes and cost reductions.
Tasked with navigating a fractious political landscape, Barnier faces an uphill battle in implementing reforms as he works to address the mounting financial challenges facing France. He highlighted the imperative to bring down the deficit to five percent of GDP by 2025, ultimately aiming to hit the three-percent target by 2029.
Despite grappling with economic issues, Barnier also touched upon the delicate situation in New Caledonia, deferring local elections until 2025 following recent unrest. The PM’s appointment comes in the wake of a tumultuous period of political uncertainty, marked by unprecedented parliamentary discord and contentious snap elections.
While facing opposition from left-wing lawmakers, Barnier remains resolute in his mission to steer France towards economic stability and political cohesion.