France is on the brink of a financial crisis, regardless of who emerges victorious in the upcoming snap election. According to France’s AFP news agency, the spending promises of each political bloc are likely to strain the country’s public finances, with vague proposals and a disregard for basic math.
The far-right National Rally (RN) is eyeing a reduction in VAT sales tax on energy, with plans to offset the cost by slashing contributions to the EU budget. However, this move would result in billions of euros lost in public revenue, with additional proposals such as lowering the retirement age and increasing wages adding to the financial burden.
On the other end of the spectrum, the left-wing New Popular Front (NFP) alliance is promising generous benefits such as increased civil servant pay and free school lunches, but questions remain on how these initiatives will be funded. The NFP’s ambitious plans include a tax on superprofits and a wealth tax on financial assets, but critics are skeptical of the feasibility of these proposals.
In the center, Macron’s ‘Together’ alliance is focusing on deficit reduction with a goal to meet EU fiscal rules by 2027, but doubts persist over the feasibility of this plan. Proposals for cutting power bills and linking pension hikes to inflation are on the table, but details on public sector wage increases remain vague.
As the election looms, the future of France’s public finances hangs in the balance. With each bloc making grand promises that could strain the country’s coffers, voters will have to navigate a sea of uncertainty when heading to the polls. Stay tuned as we continue to monitor the situation and provide updates on the evolving financial landscape in France.
