In his first policy speech, new PM Barnier emphasized the urgent necessity to slash the budget deficit and significantly reduce France's national debt, stating, "The sword of Damocles hanging over us is our colossal financial debt." He highlighted that France's deficit is undermining its standing within Europe and set ambitious targets: reducing the deficit to 5% of GDP by 2025 and reaching the 3% ceiling by 2029.
Barnier further specified that the austerity plan would mix higher taxes for profitable big companies with spending cuts, asserting, "Two-thirds of the cuts would come from reducing spending but that the government would ask big companies making large profits to contribute to the recovery." This strategic move reflects attempts to ensure fair contributions from prosperous sectors while curtailing public expenditure.
Another key issue Barnier raised was political stability. He mentioned the complications posed by his minority government's fragmented parliament and internal strife, stating, "Faces the challenging task of plugging a huge hole in public finances at a time when the fragmentation of parliament and infighting in his minority government will make it hard to push through reforms."
On a separate note, Barnier also announced a postponement of local elections in the overseas territory of New Caledonia until the end of 2025, citing recent violence between communities. He noted, "This territory witnessed violent unrest earlier this year, prompting us to take more time to stabilize the situation before proceeding with elections.
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