The Minister of Economy, Éric Lombard, expressed his desire to prevent tax increases in the 2025 budget, insisting that any increase should be “extremely limited”. In this interview La Tribune Sundayhe explained that the main objective of his government will be to reduce the public deficit, forecast at more than 5% of GDP for 2025, while protecting economic growth.
A budget under great controversy
The minister, who took over Bercy's job at the end of December, is determined to restore the country's financial stability after the previous fiscal crisis, approved by the government. Éric Lombard emphasized the importance of finding a balance between reducing public spending and moderate taxation. According to him, a significant part of the effort to bring the deficit under control will come from additional investment rather than a significant increase in taxes.
“There can be discussions about tax increases, but they will be very limited,” he said, stressing that the most important thing would be to reduce public spending to avoid damaging economic growth. The minister also spoke about the need to maintain a stable fiscal environment to encourage businesses to invest and create jobs, a necessary condition for economic recovery.
Political negotiations for an agreement
Aware of the need to support parliament for the budget, Éric Lombard expressed his desire to enter into dialogue with all the politicians represented in the National Assembly and the Senate. He invited the leaders of these groups to come and talk to Bercy, so that they could reach an agreement on the monetary policy. The minister said that the negotiations will be open until January 14, 2025, the date scheduled for the general policy speech of Prime Minister François Bayrou.
This advisory process is seen as a response to the problem of credibility arising from the review of previous budget proposals. Éric Lombard thus wants to make the country have a stable and reliable income, and reduces the concerns expressed by some economists about the recession. According to him, France is not at risk of recession in 2024, and growth should reach around 1.1%, a sign of resilience in the face of global crisis challenges.
Despite the economic crisis, Éric Lombard wants to be optimistic and believe that a compromise is possible. He assured him that he would seek “full agreement”, both parliamentarians and social partners. However, he stressed that the country's economic credibility should not be sacrificed for fiscal austerity. The construction of a credible budget is, according to him, an important response to the concerns of the financial market, especially after the downgrade of France by Moody's.
In conclusion, Éric Lombard reiterated that the government is working on an important budget, while being flexible in the process of tax increases and aiming for a strict control of public spending. This approach should, according to him, make it possible to maintain a good economic situation and meet the expectations of citizens.
