French PM calls for ‘national effort’ to cut deficit

FRENCH Prime Minister Michel Barnier on Sunday called for a “national effort” to cut the country’s public-sector deficit, but ruled out across-the-board tax rises.

A day after President Emmanuel Macron appointed a new government, Barnier told the France 2 broadcaster that the government’s financial situation was “very serious”.

The situation required measures to rein in spending and raise income, he added - and high earners would have to “do their bit” to help France’s finances recover.

But there would be no income-tax increases for “people with low incomes, or wage earners, or the middle-income class”, he said.

“I am not going to increase the tax burden for all French people further, they already pay the highest taxes among all EU partners,” he said.

Barnier’s first major task will be to submit a 2025 budget plan addressing France’s financial situation next month.

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France has been placed under a formal procedure for violating European Union budgetary rules. AFP