French Premier Barnier eyes tax hikes worth up to 18 billion euros, Parisien reports

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PARIS (Reuters) – French Prime Minister Michel Barnier, who is due to outline his priorities in a much-awaited speech later on Tuesday, is planning tax measures that would boost state revenues by 15 billion to 18 billion euros ($16.71-20.06 billion), paper Le Parisien reported.

Barnier’s government is under pressure to plug a hole in the finances of the euro zone’s second-biggest economy, finding billions of euros in spending cuts and tax increases to finalise a 2025 state budget and hand it over to lawmakers by mid-October.

“Barnier is expected to propose several levers to achieve this objective,” Le Parisien reported, without citing sources, saying Barnier’s plans include raising an additional 8 billion euros through taxes on corporations, and imposing an additional 3 billion euro levy on energy companies and share buybacks.

The plans also include significantly raising income taxes for top earners which would bring in some 3 billion euros, and increasing electricity taxes for another 3 billion euros, the paper said.

The report also suggested that Barnier intends to postpone France’s achievement of the euro zone’s common 3% deficit target to 2029 from 2027.

Barnier’s office did not immediately reply to a Reuters request for comment.

Budget minister Laurent Saint-Martin said last week the hole in public finances was worse than expected, with the budget deficit at risk of topping 6% of economic output, far above the 5.1% estimated by the previous government in the spring.

Barnier is due to deliver his general policy speech in front of France’s National Assembly at 1300 GMT.

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