France"s PM calls for national effort to tackle deficit

On September 22, French Prime Minister Michel Barnier addressed the nation in his first televised interview since taking office. He emphasized the urgency of addressing France's public-sector deficit, describing the financial situation as 'very serious.' Barnier outlined the need for a national effort to rein in spending and increase income, particularly highlighting that high earners would need to contribute more to help stabilize the country's finances. However, he firmly ruled out any tax increases for low-income and middle-class citizens, stating that they already bear the highest tax burden among EU countries. Barnier's comments came shortly after President Emmanuel Macron appointed a new government, signaling a potential shift in fiscal policy. The Prime Minister's immediate priority will be to prepare a budget plan for 2025, which is expected to address the pressing financial challenges facing the nation. This plan will be crucial as France has been placed under a formal procedure for violating EU budgetary rules, which adds pressure to implement effective financial measures. The Prime Minister's approach indicates a focus on targeted fiscal responsibility rather than broad tax increases, aiming to balance the need for revenue with the economic realities faced by ordinary citizens. By calling for a collective effort, Barnier seeks to engage the public in the process of financial recovery, emphasizing that the burden should not fall disproportionately on those with lower incomes. As the government prepares to tackle these challenges, the implications of Barnier's statements will likely resonate throughout the political landscape, influencing public sentiment and shaping future economic policies in France.