France Plans €32 Billion Spending Cuts for 2025 Budget

The French government is targeting public spending cuts of between 30 billion and 32 billion euros for the 2025 budget as part of an effort to manage inflation at 1.4%. Budget Minister Amelie de Montchalin emphasized the importance of these measures to avoid tax increases on lower and middle-income groups. To achieve a total savings of 53 billion euros, the government plans to enhance tax revenue by 21 billion euros through stricter tax avoidance measures. Prime Minister Francois Bayrou is also considering renegotiating contentious pension reforms to gain support from left-wing lawmakers, which is critical for passing the budget. The government aims to finalize an agreement in parliament by the end of January, amid significant economic challenges highlighted by the current inflation rate of 1.3%. These fiscal strategies reflect a softer approach following backlash against previous aggressive cuts that led to a change in leadership.