France plans on increasing taxes on rich folks
(MENAFN) French Prime Minister Francois Bayrou has announced plans to impose a new tax targeting the country’s wealthiest citizens as part of a broader austerity strategy aimed at reducing public debt and narrowing the budget deficit.
The package includes a new “solidarity contribution” focused on high-income earners to help cover a €43.8 billion ($47.5 billion) budget gap. An existing levy on individuals earning over €250,000 ($270,000) is also expected to be expanded.
“The burden must be shared fairly. We should ask less from those who have little and more from those who can afford it,” Bayrou stated on Tuesday.
France’s budget deficit reached 5.8% of GDP last year, nearly double the EU’s official 3% ceiling.
One of Bayrou’s more controversial proposals is to eliminate two national public holidays — Easter Monday and Victory Day on May 8 — as a way to increase productivity. Right-wing leader Jordan Bardella criticized the plan, calling it “an attack on our history and traditions.”
Additional cost-cutting measures include limits on healthcare spending and a freeze on pensions and social benefits at 2025 levels.
Defense spending, however, is set to rise. France’s military budget is projected to hit €64 billion ($69 billion) by 2027, doubling the figure from 2017. President Emmanuel Macron has pledged an extra €6.5 billion ($7 billion) in defense funding over the next two years, citing increased threats to European security.
A recent defense review has warned of a potential “major war” in Europe by 2030, identifying Moscow as a primary threat. The Kremlin has rejected such accusations, claiming NATO is using Russia as an excuse for its military buildup.
France’s public debt now stands at €3.3 trillion ($3.6 trillion), or roughly 114% of GDP. Left-wing parties have accused the government of prioritizing military budgets at the expense of social welfare. Jean-Luc Melenchon, leader of La France Insoumise, called for Bayrou’s resignation, arguing that such “injustices can no longer be tolerated.”
Bayrou will need parliamentary approval for these proposals before presenting the final budget in October.
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