From Bloomberg, October 11:
- Temporary levy on 440 firms to raise €12 billion in 2025-2026
- Tax on shipping companies to raise €800 million over two years
The French government unveiled a budget for next year that aims to deliver a €60.6 billion ($66.2 billion) remedy for its creaking public finances and rebuild investor confidence even as it risks eviction by a hostile parliament.
Spending cuts will account for just over two thirds of what Finance Minister Antoine Armand called an unheard-of fiscal effort, with the rest coming from higher taxes on businesses, the wealthy and energy.
“Our country is in an unprecedented situation and at a pivotal moment,” he told reporters during a presentation of the delayed draft bill on Thursday. “The French economy is holding up, but our public debt is colossal. It would be both cynical and fatal not to see it, say it and recognize it.”
The 2025 budget is a crucial part of Prime Minister Michel Barnier’s efforts to restore political and fiscal order after months of volatility and uncertainty sparked by President Emmanuel Macron’s decision to dissolve the National Assembly and call snap elections.
Under the plans, temporary levies on some 440 profitable companies with annual revenue of more than €1 billion would generate €8 billion next year and €4 billion in 2026. An exceptional tax on maritime transport companies would contribute €500 million and €300 million in those same years....
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M. Armand should probably have a plan to halt capital flight as well.
Also at Bloomberg, this time October 10:
France Plans to Sell €300 Billion of Bonds to Finance Budget
- Target is higher than this year’s €285 billion planned sales
- Government is under pressure to narrow the public deficit
France has announced plans to sell €300 billion ($328 billion) in government bonds next year to finance its budget, following months of political turmoil.
The target compares to sales of €285 billion this year and is in line with analyst estimates. Part of the money will go toward funding an estimated €136 billion deficit, which is €31 billion lower than this year’s....
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Sounds like Chicago Finance where the mayor wants to take out a $300 million loan to pay for a raise for Chicago Teachers Union members.
You do not want to emulate Chicago Finance.
Related September 26:
"Bank of France Chief Says Bond Markets Are Warning on Debt"
