Prime Minister Barnier warns France faces severe budget crisis as government talks stall

RFI

18 September 2024 at 9:38 am·1-min read

France’s budgetary crisis is "very serious", Prime Minister Michel Barnier warned on Wednesday in his first public statement since taking office – emphasising the need for a clearer picture of the country's financial health.

Barnier, who stepped into the role earlier this month, acknowledged the gravity of France’s public sector deficit in an interview with the French press agency AFP.

The deficit is projected to hit around 5.6 percent of GDP this year and exceed 6 percent by 2025 – far surpassing the European Union's 3 percent limit.

Although France was this month placed on a formal procedure for violating EU budgetary rules, the Bank of France has warned that meeting the EU deficit limit by 2027 is "not realistic".

Tax hikes?

Barnier, appointed by President Emmanuel Macron after a lengthy political struggle, has suggested possible tax rises to stabilise finances – a proposal Macron has consistently rejected during his presidency.

"I am discovering that the country's budgetary situation is very serious," Barnier said, underscoring the urgent need for "responsible action" beyond mere statements.

Impeachment proceedings against France's Macron pass first hurdle

The meeting was intended to clarify the participation of Macron's allies in the new government.

Tensions

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Tax hikes?

Tensions

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