France faces pressure as Barnier urged to avoid tax hikes amid budget crisis

France's new prime minister, Michel Barnier, is under pressure not to raise taxes as he prepares the country's budget amid a significant debt crisis. Outgoing Interior Minister Gérald Darmanin emphasized that Macron's camp would withdraw support if tax increases were proposed. Barnier's discussions about tax hikes have raised concerns among members of his parliamentary group, with former Prime Minister Gabriel Attal expressing doubts about Barnier's plans. The situation is complicated by France's excessive deficit, which could lead to fines from the EU if not addressed. Barnier faces tight deadlines to present a credible debt reduction plan to the European Commission, as French debt is projected to reach 5.6% of GDP this year, exceeding the EU's three percent limit. Former Finance Minister Bruno Le Maire suggested that new taxes could be introduced to help meet budgetary goals, but central bank officials have warned that achieving compliance by 2027 may be unrealistic. The political landscape is tense, with Barnier potentially seeking support from the left while navigating the challenges of fiscal responsibility and public sentiment regarding taxation. The outcome of these discussions will significantly impact France's economic future and its relationship with the EU.