No more procrastination. Two days before his declaration of general policy and two weeks, undoubtedly, before the presentation of his first budget, Michel Barnier began to adopt with his government the measures considered necessary to regain full control of public finances. Among the projects examined by the executive in recent days, and consulted by the world, would include, in particular, an exceptional tax of 8 billion euros for large groups and a tax on the buyback of shares. The income tax would remain stable.
There is an emergency. Arriving at Matignon, “I found a very degraded situation, much more degraded than what has been said,” explained the new prime minister, in an interview with Saône-et-Loire Diary, on September 27, suggesting that the Attal government had hidden the extent of the budget drift. The public deficit is “today more than 6%” of the gross domestic product (GDP), very far from the 4.4% initially planned for 2024, laments Michel Barnier. As for the debt accumulated after past deficits, it reached a new record at the end of June, with 3.228 billion euros, almost a trillion more than when Emmanuel Macron arrived at the Elysée in 2017, INSEE revealed on September 27.
To stop this drift, the Government does not rule out very quickly presenting a project to modify the finance law to adopt applicable fiscal measures before the end of the year. Above all, he is preparing the somewhat disastrous 2025 state budget. The presentation of the project to the National Assembly was delayed, from the legal date of 1Ahem October to “the week of October 9”, which implies finalizing the text in the coming days to send it to the Superior Council of Public Finances and the Council of State, in charge of evaluating it before transmitting it to parliamentarians. In Matignon, inter-ministerial meetings follow one another to try to meet the deadline.
Essentially, the recovery effort will involve cutting some public spending, the new government has promised. But tax increases are also being considered, officially in the name of “tax justice.” “The situation of our public finances requires us to take new measures involving taxpayers with greater contributory capacity,” We judge in Bercy. This is the meaning of the first fiscal projects put on the table.
No extension of income tax
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