A day after French Prime Minister Michel Barnier announced plans to address France’s “colossal” debt through a combination of spending cuts and new taxes, government spokesperson Antoine Armand assured the public that low- and middle-income earners would not bear the extra tax burden. Speaking to RTL broadcaster, Armand emphasized that the financial effort would largely target the wealthy and high-earning businesses.
France aims to improve its fiscal situation by 40 billion euros ($44 billion) in 2025, with the goal of reducing the public sector deficit from more than six percent of gross domestic product (GDP) this year to five percent next year. This is part of a broader strategy to stabilize France’s debt levels and regain financial control.
Two-thirds of the 40 billion euros are expected to come from spending cuts across various sectors. The remaining one-third will be generated through new taxes, primarily aimed at high-income earners and large corporations. Armand stressed that this would be a “temporary” measure until spending cuts take full effect.
Armand clarified that income tax brackets for everyday workers would not change under the new fiscal policies. “Those who go to work every day” will not see an increase in their tax obligations, he said, reaffirming the government’s commitment to protect the financial stability of the average French citizen.
In addition to taxing high-income individuals, the government plans to impose higher taxes on “large and very large companies.” However, Armand made it clear that these tax increases would be temporary and would not extend over multiple years, providing reassurance to the business sector.
Prime Minister Barnier, during his first major policy speech to parliament, outlined the government’s revised target of reducing the deficit to the European Union’s limit of three percent of GDP by 2029. This is a two-year extension from the previous deadline, reflecting the challenge of addressing the country’s deep financial woes.
France’s public debt has exceeded 3.2 trillion euros, representing over 110 percent of GDP. Barnier described this debt as “the true sword of Damocles” hanging over the nation, warning of the long-term consequences if the situation remains unaddressed. The government is set to present its 2025 budget plan to parliament next week, detailing these new measures.
