French minister plans temporary tax hikes targeting the wealthy

France’s finance minister assures that tax hikes will target high-income groups and be temporary to improve the country’s financial situation. With €40 billion to be raised next year, two-thirds will come from spending cuts and the remainder from new taxes.

Low- and middle-earners will be spared from the extra fiscal burden, while high-income individuals and large companies will bear the brunt. The government aims to reduce the deficit to 5% of GDP from over 6% this year, reaching the EU’s 3% limit by 2029.

This new economic strategy is crucial to tackle France’s debts exceeding €3.2 trillion, representing more than 110% of GDP. The government is set to present its 2025 budget plan to parliament next week, outlining the path to economic recovery.