Coin Press - French PM vows more taxes and spending cuts ahead of budget fight

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French PM vows more taxes and spending cuts ahead of budget fight
French PM vows more taxes and spending cuts ahead of budget fight / Photo: ALAIN JOCARD - AFP

French PM vows more taxes and spending cuts ahead of budget fight

France's new Prime Minister Michel Barnier pledged new taxes and spending cuts Tuesday to reduce a "colossal" debt, in a policy address that met with a raucous reception from lawmakers who could topple his government at any time.

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Barnier, a right-wing former EU Brexit negotiator, was appointed by centrist President Emmanuel Macron to bring some stability after the political chaos created by a hung parliament that resulted from snap elections this summer.

But furious heckling of his first major policy speech, especially from the left, recalled that his loose coalition ranks of conservatives and centrists are outnumbered by the NFP alliance and far-right National Rally (RN).

If both joined forces, they could remove Barnier in a confidence vote.

Opportunities to topple the government will abound in the coming months as ministers struggle to get a 2025 budget through parliament before year's end.

He said the government aims to reduce the deficit to five percent of GDP in 2025, "on the right path" to reach the European Union limit in 2029 -- two years later than previously planned.

He called France's "colossal" debts of over 3.2 trillion euros ($3.5 trillion) -- more than 110 percent of GDP -- "the true sword of Damocles... hanging over the head of France and of every French person".

He said that two-thirds of deficit reduction would come from slashing spending from its present 57 percent of GDP -- far above the 49-percent European average.

But while France has "among the highest taxes in the world," there would be "a time-limited effort that must be shared, with an insistence on tax justice" or equitably sharing the burden, Barnier added.

Highly-profitable big companies and wealthy individuals would both be called on to pay more, he said.

- Red lines -

Barnier sought to throw some bones to the left.

He called out "a second sword of Damocles that is just as terrible: the environmental debt we are leaving as a legacy to our children".

France would bet on both its traditional strength in nuclear power and renewables to reduce carbon emissions, he said.

Barnier opened the door to tweaking last year's hugely unpopular pension reform that raised the retirement age.

And in a list of red lines, he vowed "zero tolerance for racism and anti-Semitism" and protection for "freedoms achieved over the years" including on abortion, gay marriage and in-vitro fertilisation.

Some opponents and observers have feared for migrants' rights and sexual and reproductive freedoms under a largely conservative government tolerated by the RN.

Barnier's pledges directed at far-right voters included greater "security in daily life", where "the public will be reassured by the presence of law enforcement".

He added that "France will continue to re-establish checks on its own borders for as long as necessary, as is allowed under European rules and as Germany has just done".

In talks with major countries of origin for irregular migration, France would threaten reductions in the number of visas issued for legal travel, Barnier warned.

His comments on immigration follow the rape and murder of a 19-year-old Paris student where a Moroccan man due to be deported was named as the suspected attacker.

MPs observed a minute of silence for the victim, named as Philippine, as the parliamentary session opened.

- Eyes on top job -

The NFP -- an alliance of hard-left France Unbowed, Communists, Socialists and Greens -- is expected to file a confidence motion against the Barnier government in the coming days.

But the RN is biding its time for now, betting on a strategy of looking responsible to voters rather than triggering more political chaos.

Eyes in the political scene are already turning towards 2027, when a new presidential election must be held at which Macron cannot stand again due to term limits.

RN chief Marine Le Pen hopes her fourth presidential bid will be the one to bring her into the Elysee Palace, after record scores at this year's European and parliamentary elections.

The party is now the largest single outfit in the National Assembly (lower house), while far short of a majority in the 577-seat chamber.

The rightward shift in French politics comes as part of a general trend in Europe which also on Sunday saw Austria's far-right Freedom Party come out on top in national elections.

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M.Mendoza--CPN