French Government Unveils 2025 Finance Bill

French Prime Minister Michel Barnier has unveiled a draft budget for 2025 aimed at reducing the country's fiscal deficit from 6.1% to 5% of GDP, amid growing pressure from the European Union. The plan includes significant spending cuts totaling €60.6 billion, with about two-thirds coming from reductions in public services, including a halt to replacing some civil servants and cuts to unemployment benefits. Additionally, an 'exceptional contribution' will be levied on approximately 400 large corporations and wealthy households, targeting those with revenues exceeding €1 billion, which is expected to generate €12 billion in revenue over two years. Local authorities will also face budget cuts of €5 billion. Critics argue that the proposed austerity measures may disproportionately affect vulnerable populations, while Barnier's minority government may face challenges in securing parliamentary support for the budget. The budget is characterized by its aggressive nature, with various taxes and cuts that are anticipated to spark heated debates in the National Assembly.