French government faces challenges in defending 2025 budget bill
Date
10/17/2024 12:28:32 AM
(MENAFN) The French government, led by Prime Minister Michel Barnier, is facing significant challenges in defending its 2025 budget bill, which has come under intense scrutiny from members of parliament. The National Assembly’s finance committee is set to begin examining the initial part of the bill on Wednesday, focusing on tax revenues. This review comes amidst widespread dissatisfaction over the proposed tax increases.
According to a French newspaper, nearly 1,800 amendments have been submitted to the revenue section of the budget, reflecting deep Political divisions within the assembly. From the left-wing New Popular Front (NFP) to President Emmanuel Macron’s party, "Together for the Republic" (EPR), and the right-wing Republic (DR), lawmakers have voiced their opposition to the government’s financial strategy. Even the far-right National Rally (RN) has expressed discontent, highlighting the lack of majority support for the proposal.
Eric Cockerell, head of the far-left Finance Committee, predicted that the amendments would likely lead to increased revenues, while spending in certain areas might be maintained or even raised. This would further complicate the government's efforts to achieve fiscal discipline, as it struggles to balance its financial objectives with growing demands from lawmakers.
To tackle the rising deficit, which is expected to reach 6.1 percent of GDP in 2024, the government plans to save €60 billion. Two-thirds of these savings would come from spending cuts, with the remainder generated from tax increases—a strategy that has faced strong resistance from many deputies in the assembly.
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