French Prime Minister Michel Barnier’s new government is reportedly considering temporarily increasing corporate taxes on large companies and taxing share buybacks in a bid to balance public accounts, according to Le Monde newspaper.
As shown Europe Presswould increase by eight and a half points the obligations towards the treasury of companies with a turnover of at least 1,000 million euroswith a view to raising 8 billion euros in 2025. Furthermore, the Elysée could also make share buybacks taxable.
Among the French companies concerned in the Eurostoxx 50 index are Vinci, BNP Paribas, Société Générale, TotalEnergies, Kering or Airbus. Among the Spanish, ACS should pay more taxes via Abertisgiven that it operates motorways in France and has 50% of its capital with the Italian Mundys.
Barnier’s executive must tackle the French public deficit which, according to documents recently consulted by AFP It could close this year at 5.6% and at 6.2% next year.
In addition, he will have to do it without a legislative majority and quickly, since he will have to present a draft budget in the coming days to send it to Parliament no later than mid-October.
The previous government predicted a 3% gap for 2027, but lower-than-expected revenues and higher spending threw the forecasts out of balance.
