In terms of bringing in revenue, Barnier is planning to hike taxes on big corporations, share buybacks and plane tickets. He’s also expected to ask France’s wealthiest taxpayers for a “special contribution.” Those measures, government officials said, are expected to bring in €20 billion next year. They are already facing criticism from French President Emmanuel Macron’s allies.
Since Barnier’s appointment as premier in early September, he has made it clear that bringing down France’s €3 trillion debt is his top priority. The prime minister has repeatedly promised to be honest with the French about the state of the country’s finances, including during his first address to parliament on Tuesday. In that speech, Barnier announced that France will need until 2029 to comply with European Union spending rules requiring a deficit below 3 percent of GDP. The previous government had promised to reach the deficit goal in 2027, a deadline many experts saw as unrealistic.
Barnier likened the national debt to a sword of Damocles hanging over the French “which, if we’re not careful, will place our country on the brink of the abyss.”
The European Commission last year placed France under a so-called excessive deficit procedure for overspending. Paris has until the end of the month to send Brussels a credible debt-reduction plan. French officials believe that the cuts announced Wednesday will sufficiently assure European negotiators.
Barnier’s government is planning to finalize its budget for next year on Oct. 10.