French prime minister calls for ‘national effort’ to cut deficit

French Prime Minister Michel Barnier speaks during the evening news broadcast of French TV channel France 2 at the France Televisions studios in Paris, on Sunday, September 22, 2024. – arnier on Sunday called for a “national effort” to cut the country’s public-sector deficit, but ruled out across-the-board tax rises. (Photo by Julie SEBADELHA / POOL / Agence France-Presse)

PARIS, France — 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.

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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.

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

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