June 30, 2024
Spending promises are likely to burden France’s public finances
Public finances in France are likely to suffer whichever bloc wins the early elections, according to Agence France-Presse.
The agency has summarized the spending promises of each competing bloc, which it says lack detail and often ignore mathematical facts.
National Rally of the Far Right
If the National Rally wins, it wants to cut VAT on energy sales, and partly finance the move, which it plans to start as early as July, by contributing €2 billion less to the EU budget, even though the bloc’s 2021-2027 budget has already been voted on.
In any case, these savings will not offset the loss in public revenue, which the union says means 7 billion euros less for public coffers for the rest of this year and 12 billion euros in a full year.
However, the party also wants to impose a tax on exceptional profits from energy producers and force shipowners to pay regular corporate tax instead of the current tonnage tax.
Other costly future plans include tying pensions to inflation, lowering the retirement age to 60 for people who started working at 20 or earlier, exempting some workers under 30 from income tax, and raising the wages of teachers and nurses.
The Royal Navy will also ditch the retirement age increase in 2023 to 64 from 62, replacing it with a more progressive system that has yet to be determined.
New Left Popular Front
The New Popular Front coalition says it intends to increase civil servant salaries by 10%, provide free school lunches, supplies and transportation, and increase housing subsidies by 10%.
It says it could finance this by imposing a tax on large profits and reimposing a wealth tax on financial assets, each of which would raise €15 billion, according to the bloc.
The group also wants to freeze basic food and energy prices while raising the minimum wage by 14% while offering support to small businesses that cannot cope with the rise.
Other costly measures planned include hiring more teachers and healthcare workers and providing subsidies for home insulation, which the union wants to finance by closing tax loopholes, making income tax more progressive, and allowing families to inherit up to 12 million euros.
The NFP will also cancel the increase in the retirement age for 2023 and wants to eventually lower it to 60 years.
In contrast to the National Front, it does not plan to reduce the budget deficit in line with France’s commitments to its EU partners.
He rejects the European Union’s financial rules.
The “Together” Center Alliance.
Macron’s party has said it is committed to cutting the budget deficit to 3% of GDP by 2027, but whether that can be achieved has been called into question by institutions from the national auditor to the International Monetary Fund.
The party also pledged to cut electricity bills by 15% from 2025 and link pension increases to higher inflation.
In addition, it says it will raise public sector wages, without indicating any amount.
The party says it will not introduce any broad tax increases and will increase the amount parents can give to their children tax-free.
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