It is a proposal within the 2025 Budget project. It would affect companies with at least 1,000 million euros in turnover for two years.
The French government intends charge some 400 companies an “exceptional contribution” on their profits obtained in the French country. It was presented in the 2025 Budget project, it will last two years and will aim to clean up public finances.
The measure will affect companies with at least 1,000 million euros of turnover and expects to raise 12 billion euros ($13.1 billion) between 2025 and 2026. The contribution will be applied to profits obtained in France during this year and next.
This initiative It is promoted by the new French Prime Minister, the conservative Michel Barnierwho assumed a public debt that represented 112% of the Gross Domestic Product (GDP) at the end of June and a fiscal deficit of 6.1%. Their goal is to lower it to 5% in 2025.
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Fiscal adjustment and new taxes to reduce the fiscal deficit
The prime minister Michel Barnier wants to “avoid a crisis whose first victims would be the weakest among us”assured the government spokesperson, Maud Bregeon, after the presentation of the draft Budget for 2025.
To reduce the fiscal deficit, the Budget presented by Barnier also provides for cuts in public spending by 40,000 million euros (43.75 billion dollars) and a increased taxes on large companies and fortunes of 20,000 million euros. To achieve this, one of the measures planned is eliminate 2,201 civil servant positionsespecially in public education, and reduction of the budget of the ministries.
It is not clear how far Barnier can go with his new Budget. To do this you have two options. Get the support of Parliamentwhere it does not have a majority, or remove it without the vote of the legislators, exposing themselves to a possible motion of censure.
Source: Ambito
