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Despite the slippage in public finances, the Prime Minister confirmed the government’s desire to reduce taxes on the middle classes by two billion euros next year. On condition of “financing this commitment”…
Over the past two weeks, the world has changed! With the unprecedented slippage in public finances, what are yesterday’s promises worth? For 2023, the public deficit is ultimately 5.5% of gross domestic product, compared to 4.9% initially announced. Said like that, it doesn’t mean anything, but it does mean that the government will have to find billions to return to a trajectory acceptable to its European partners. He has just committed to returning the deficit below 3% in 2027. Almost impossible, says the High Council of Public Finances half-heartedly, with the government’s forecasts missing, according to him, “of credibility and consistency”. Just that!
The government has already canceled 10 billion euros of credits for ministries this year and has just announced a second salvo, still of 10 billion euros. In 2025, 27 billion will need to be found! Under these conditions, what happens to the President of the Republic’s promise to reduce taxes on the middle classes by 2 billion euros next year? Gabriel Attal, the Prime Minister, has also made the middle classes one of his hobby horses. This Thursday evening on BFMTV, he reaffirmed that this promise was not buried. “We could keep this commitment by financing it, it will be kept”, he said. Basically, this means that we will have to put a saving of 2 billion euros on the other side.
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As for the increase in taxes that all observers fear to return to the budgetary nails, Gabriel Attal reaffirmed that there was no question of it. To Nicolas Doze, the channel’s economic journalist, who objected that lowering social benefits, as the government wants to do in certain areas, amounted to increasing taxes, the Prime Minister disagreed. “It’s not the same people who are affected”, he said. Understand that the middle classes, who work, would be spared from the blows of the social sphere.
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The Prime Minister did not bother with the details. He kicked into touch. “The budget for 2025 is prepared between June and September. Our budgetary choices will be made at that time”, he concluded the sequence! To keep the promise of tax cuts, will it be necessary to add another two billion in savings to the 27 billion that the government has committed to finding? The budgetary equation is increasingly complex to solve… Above all, the High Council of Public Finances reminds “that such an effort has never been achieved in the past”. The promises and all those who believe in them… See you in the fall.
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