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.

Read full article

Stock Forecasts

EWQView EWQ chart on TradingView

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.

Related News

France Unveils Tough Austerity Budget to Mend Its Finances

Oct 10, 2024, 3:09 PM

The French government is seeking deep spending cuts and higher taxes in an effort to tame its ballooning debt and deficit.

EWQ

France Prepares to Raise Taxes on Businesses and the Rich

Sep 25, 2024, 12:00 AM

France’s new prime minister, Michel Barnier, has opened the door to reversing some of President Emmanuel Macron’s tax cuts in an effort to fix the country’s widening budget deficit.

EWQ

France’s Budget Problems ‘Very Serious,’ Prime Minister Says

Sep 18, 2024, 1:14 PM

The French government, which missed a deadline this week to show how it would cut its debt and deficit, is struggling to meet fiscal requirements set by the E.U.

EWQ