France in 'very dangerous situation' says PM - DW

French Prime Minister Michel Barnier admitted on Sunday (22/09/2024) that his country is “in a very serious situation” with a public debt of more than three trillion euros and does not rule out raising taxes on the rich, insisting on the need to ensure credibility before the markets. To do so, he called for a “national effort”.

“A large part of our debt comes from international and foreign markets, and we must maintain France's credibility,” Barnier said in his first interview since forming the new government. “In fact, the French already pay more taxes than all other Europeans.”

He added that he would not raise it “neither for the humblest, nor for the workers, nor for the middle classes,” but at the same time noted that “I will not exclude the richest people from participating in the national campaign.” The effort that must be made.” Barnier must present the 2025 budget plan quickly, amid EU measures against France for violating budget rules.

Excessive disability procedure

France is facing a delicate financial situation, with the public deficit rising last year to 5.5 percent of GDP, compared with the budget forecast of 4.9 percent. The Treasury expects France to end up with a deficit of 5.6 percent this year, far from the 3 percent limit recommended by European rules, and a debt of 112 percent.

As a result, the European Commission opened an excessive deficit procedure in France in July and the outgoing government set a target of cutting the deficit to 3% of GDP in 2027, but few considered this path credible, starting with the governor of the European Central Bank and the Bank of France, François Villeroy de Galois, who was betting on the long term.

The new French government consists of 39 members, most of them from the center-right coalition that includes President Emmanuel Macron and the opposition party Les Républicains (left, conservative), which is returning to power after twelve years.

DZC (EFE, AFP)