The Bank of France calls for an “exceptional effort” from “certain large taxpayers” or “large companies”

In the current political climate, François Villeroy de Galhau assures that he does not want “discord”. This did not prevent the governor of the Bank of France from putting his two cents into the debate on tax increases on BFMTV this Wednesday, September 18. While the public deficit is expected to once again exceed 5% of gross domestic product (GDP) in 2024, the leader advocates limiting public spending but also increasing taxes to return below the 3% limit imposed on European countries by protocol no. 12 of the Maastricht Treaty.

François Villeroy de Galhau calls for “don’t touch the middle classes and SMEs” but advises to “not to exclude an exceptional and reasonable effort from certain large companies or certain large taxpayers” to reduce the public deficit. “It may be a temporary effort”detailed the governor of the Bank of France who already called this Tuesday, September 17 in the columns of the Parisian has “lift the taboo on tax increases.” Michel Barnier, recently appointed to Matignon, is also considering increasing levies.

According to a former government advisor, he would consider a surcharge on corporate tax. Others are talking about increased tax pressure on the wealthiest. This Tuesday, the Prime Minister’s entourage justified his position by explaining that “Saving money won’t be enough”.

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“I think it takes both.”recommends François Villeroy de Galhau, adding that it is necessary “mainly cost savings” by evoking efforts “at the state level but also at a local level”The governor of the Bank of France hopes to reduce costs by 75 billion euros over five years.

Uncertainty in the political environment

François Villeroy de Galhau also pointed out the uncertainty of the political environment that weighs on the French economy. Despite inflation that should stabilize around 2% of GDP in the coming months, households and businesses could choose the path of savings rather than consumption or investments.

A recent Bpifrance survey published on Tuesday, September 17, assures that more than half (51%) of SME/VSE managers believe that the climate of political uncertainty since the dissolution has had a “strong” negative impact on their activity. According to the public bank’s figures, 36% of managers with an investment project have postponed it. 20% of them have chosen to cancel it.