Home » Barnier faces crumbling support as French right-wing MPs slam rumoured tax hikes

Barnier faces crumbling support as French right-wing MPs slam rumoured tax hikes

by Marko Florentino
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France’s new Prime Minister Michel Barnier has said that the country’s budget is in a «very serious» situation.

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France’s Prime Minister Michel Barnier has signalled his intention to raise taxes to breathe life into the country’s ailing budget, in a move that could cause a rift in the centre-right political family that had been poised to support him.

Various sources close to Barnier have reportedly told French media that the prime minister wasn’t opposed to raising certain taxes if necessary, given the «very serious» situation that France’s budget finds itself in.

The European Union warned France that it had violated budgetary rules before Barnier came to office two weeks ago, while the Bank of France said earlier this week that a predicted return to a public deficit under 3% by 2027, in line with EU rules, was «not realistic».

France’s public sector deficit is projected to reach around 5.6% of GDP this year and rise above 6% in 2025.

The new prime minister is yet to appoint a cabinet and is due to submit a 2025 budget to parliament next month. It will be seen as his government’s first major test, and shoring up support might prove to be tricky.

Politicians on France’s right and centre who would normally be inclined to back Barnier’s conservative politics, including supporters of President Emmanuel Macron who named Barnier prime minister earlier in September, have hinted that raising taxes would be a step too far.

Barnier’s immediate predecessor and chairman of Macron’s Ensemble pour la République group, Gabriel Attal, has called for clarification of their «political line» to determine whether or not they’d take part in the government.

A meeting between Barnier, himself a member of the right-wing Les Républicains, and the Macronists that was due to take place this morning has been pushed back, with no timeframe given, according to reports.

‘A very bad idea’

Véronique Louwagie, MP for Les Républicains, reportedly said that a right-wing prime minister planning to raise taxes «is a very bad idea».

«We currently have the highest level of taxes and contributions in Europe,» she said. «Let me remind you that these contributions are levied on households and businesses.»

There’s currently no clear indication of which taxes specifically would be increased, but rumours abound that the 25% corporation tax rate would be targeted, in addition to the reintroduction of a wealth tax.

Reinstating such a tax could be seen as a way to bridge the gap with the left in the National Assembly, whose support Barnier may end up needing to push the budget through and support his coalition, following France’s fractious parliamentary elections in July.

On the opposite end of the spectrum, doing so may anger the far-right National Rally, who have the power to trigger a vote of no-confidence in Barnier which would likely pass with the support of left-wing MPs.



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