The French government is set to unveil its 2025 budget on Thursday, with plans to implement 60 billion euros ($65.68 billion) in tax hikes and spending cuts in an effort to address a growing fiscal deficit. Prime Minister Michel Barnier’s administration is facing mounting pressure from financial markets and European Union partners to take action after tax revenues fell short of projections this year and spending surpassed expectations.
The proposed budget, which includes a combination of tax increases and austerity measures, aims to rein in the deficit and stabilize the country’s finances. While the government has not yet released specific details of the budget, it is expected to include cuts to public spending, reforms to the tax system, and measures to boost economic growth.
The move comes as France grapples with economic challenges exacerbated by the Covid-19 pandemic, with the country’s debt reaching record levels and the deficit widening. Analysts have warned that failure to address the fiscal imbalance could have serious consequences for France’s economy and its position within the EU.
The 2025 budget announcement is likely to spark debate and scrutiny from both lawmakers and the public, as the government seeks to strike a balance between addressing the deficit and supporting economic recovery. With the global economic outlook uncertain and challenges on the horizon, France’s fiscal policies will be closely watched by domestic and international stakeholders alike.
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Video “French government to present 2025 belt-tightening budget • FRANCE 24 English” was uploaded on 10/10/2024 to Youtube Channel FRANCE 24 English