France Unveils Tough Austerity Budget to Mend Its Finances
Published On Oct 10, 2024, 3:09 PM
The French government is implementing a significant austerity program aimed at reducing its considerable budget deficit and debt, which are among the worst in Europe. Prime Minister Michel Barnier has announced plans to save €110 billion, including €60 billion in cuts for the upcoming year, primarily targeting the wealthy and large corporations with higher taxes. The nation's deficit has risen to 6.1% of GDP with debt exceeding €3.2 trillion, and without intervention, interest payments alone could reach €80 billion by 2027. Opposition parties are concerned that these measures will impose harsh austerity on the public.
Stock Forecasts
EWQ
Negative
The significant cuts in government spending and increased taxes on the wealthy and corporations may negatively impact the economic growth prospects in France. This could lead to lower corporate earnings and reduced consumer spending, which would negatively affect the French stock market in the short term.
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