French finance minister says new tax hikes to target the wealthy and be ‘temporary’ #FrenchFinance

France’s finance minister promised on Wednesday, October 2, that the tax hikes the government says are required to bring the country’s finances back on track will be targeted at high-income groups and limited in time.

A day after Prime Minister Michel Barnier pledged to tackle France’s “colossal” debt through spending cuts and new taxes, Antoine Armand told the RTL broadcaster that low- and middle-earners would be spared from the extra fiscal burden.

France is looking to improve its financial situation by some €40 billion next year in the hope of bringing the public sector deficit to 5% of gross domestic product (GDP) from an estimated more than 6% this year. Two-thirds of that sum are to come from spending cuts, and the rest from new taxes.

“Once we have managed to cut spending significantly, an exceptional and temporary effort will be required from those with extremely high incomes,” Armand said. Income tax brackets for “those who go to work every day” would not change, he promised. “Large and very large companies” will also be asked to pay higher taxes, Armand said, but ruled out such an extra burden “lasting for several years.”

During his first major policy speech to parliament Tuesday, Barnier said the government was now aiming to reach the European Union’s deficit limit of 3% of GDP in 2029, two years later than previously planned. He called France’s debts of over €3.2 trillion – more than 110% of GDP – “the true sword of Damocles… hanging over the head of France and of every French person.” The government is to submit its 2025 budget plan to parliament next week.