Finance and austerity: France protests Michel Barnier’s budget cuts

France certainly did not expect Michel Barnier to play stingy leading roles. And yet, with budget cuts and tax hikes, the former European negotiator is working to cut every possible expense. result? Growling can be heard from all sides. Drastic cuts, particularly to national education and pensions, saw the opposition rise as one to denounce this “social war budget”.

Budget 2025: A budget cut that causes a storm

Michel Barnier, whose appointment caused French banks to jump in early September, has hit hard with his 2025 Finance Bill (PLF). savings target of 60 billion eurosThe budget is hailed by the government as an inevitable austerity measure, but the opposition sees it as real “butchery”.

Jean-Luc Mélenchon, leader of Insoumis, condemns elimination of 4,000 places in national education like ” calamity “. Aurélien le Coq goes even further when he invokes ” social war budget “. For Éric Coquerel, President of the Finance Committee, the situation is bleak for the middle classes and the poorest.

The opposition protests, but the government remains inflexible, justifying these cuts as necessity limit rising debt – France is among the 10 most indebted countries in the world. Among the key measures we find revision of the pension calendaras well asnew tax for the richest households. What attracts people even more is the perceived uneven distribution of this effort.

Some MPs, notably Jean-Philippe Tanguy of the National Assembly, cry injustice and point to the disproportionate contribution of the working class.

Key points of the 2025 budget:

• Abolition of 4,000 posts in national education;
• Reassessment of pensions delayed by six months;
• New taxes on wealthy households (targeting 65,000 households);
• Exceptional contribution from companies with high profits;
• New taxes on airline tickets.

Public finances: Barnier imposes his law on taxes and businesses

Under the pressure of a colossal debt – the only critical one – 3,228 billion euros, Michel Barnier did not hesitate to bring out the heavy artillery to replenish the state coffers. Between new taxes for the wealthiest households and additional taxes for big businessesThe Finance Bill 2025 particularly targets those who have the most. But what does it mean to be rich in France in 2024?

At the top of the list exceptional post it is required from 65,000 tax households whose income exceeds 250,000 euros for a single person and 500,000 euros for a couple. This fee, temporary for three years, will get several billions to stabilize the country’s financial situation.

But it’s not just households that toast. Companies with a turnover of over 1 billion euros will also be involved.. The government hopes draw 12 billion euros over two years by taxing these companies at 20.6% to 41.2% of their corporate tax.

At the same time, tax reforms, such as the revision of the income tax schedule, are intended to protect low-income households from further tax increases, although many fear that this will not be enough to offset the overall impact of the budget.

On the parliamentary side, the fight promises to be tough. If the majority remains prepared to defend this budget by arguing that it is necessary to stabilize France’s economic trajectory, the opposition has not had its last word. Application of the famous Article 49.3 could be the government’s trump card to force the acceptance of this fiery text.

To avoid a major crisis, the goal remains clear: a saving of 150 billion by the end of the financial year. Otherwise, a crisis in France seems inevitable. In other words, the nightmare has only just begun.

Micaiah A.

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