French government plans tax increases to close budget gaps

The French Prime Minister Michel Barnier plans to announce comprehensive tax measures in his speech today, aimed at increasing state revenues by 15 to 18 billion euros. This was reported by the newspaper Le Parisien. The government faces the challenge of managing a significant budget deficit in the Eurozone's second-largest economy. The task involves saving billions of euros and generating additional revenues to finalize the budget plan for 2025 and present it to parliament by mid-October. Le Parisien reported that Barnier will propose several measures to achieve this goal. The plans include an additional 8 billion euros through corporate taxes, as well as an additional levy of 3 billion euros on energy companies and share buybacks. Furthermore, higher income taxes for high earners are planned to raise around 3 billion euros, along with an increase in electricity taxes to generate another 3 billion euros. Additionally, Barnier is expected to propose adhering to the 3% deficit criterion for 2029 instead of 2027. The Prime Minister's office has not yet responded to a request for comment from Reuters. Budget Minister Laurent Saint-Martin noted last week that the gap in public finances is larger than expected. The budget deficit ratio could rise above 6% of GDP, significantly more than the 5.1% estimated by the previous government in the spring. Barnier will deliver his general policy statement at 1300 GMT before the French National Assembly.