New French PM Barnier vows spending cuts to reduce deficit – DW – 10/01/2024

New French PM Barnier vows spending cuts to reduce deficit – DW – 10/01/2024

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‘The true sword of Damocles hanging over the head of France’

He described a national debt of over €3.2 trillion ($3.5 trillion), which represents more than 110% of France’s GDP, as “the true sword of Damocles hanging over the head of France and of every French person.”

“Paying off debt is the second-largest line item in government spending behind education,” Barnier continued. “Is it acceptable for us to spend more on interest payments than on our defense or research? My answer is no.”

Barnier, 73, said that the French government would find “two-thirds” of its planned 2025 deficit reduction with reductions in spending.

As the prime minister left the chamber he faced heckles from opposition lawmakers but drew applause from his minority conservative camp.

Barnier highlighted that public spending amounts to 57% of the country’s GDP, compared to a 49% average across the rest of Europe. But the government would “pay special attention to the most vulnerable people, for whom health and education services are vital.”

Barnier seeks ‘exceptional contribution from the wealthiest’

France already has “among the highest taxes in the world,” he noted, but there would be “a time-limited effort that must be shared, with an insistence on tax justice.”

The government would therefore “ask big companies making large profits to contribute to the recovery without calling our competitiveness into question.”

Barnier said said his government would “ask for an exceptional contribution from the wealthiest French people to prevent the tax avoidance strategies of the biggest taxpayers.”

France’s minimum wage, meanwhile, will be increased by 2%, starting November 1. The hike comes two months ahead of the scheduled date of the start of 2025.

‘We no longer have satisfactory control over our migration policy,’ says Barnier

In other matters, Barnier said that France no longer had “satisfactory control” over its migration policy.

“As a result, no longer are we meeting our integration objectives in a satisfactory manner,” the conservative told the National Assembly. 

The French PM saidhis government would be “ruthless” with people-traffickers, whom he said “exploit misery and despair” and encourage migrants to illegally cross the Channel and the Mediterranean.

Earlier this month, more than 100,000 people took to the streets across France to protest the appointment of Barnier, after a left-wing alliance had won the most votes in July’s snap election, called by President Emmanuel Macron.

12 dead in English Channel, calls for action grow

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jsi/msh (AFP, AP, Reuters, dpa)

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Publish date : 2024-10-01 09:55:00

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