‘We’re dancing on a VOLCANO’ French PM blasts Macron's spending 'addiction - we need cuts'
FRANCE’S prime minister has declared it is high time the country ended its “addiction” to public spending.
Edouard Philippe has boldly stated it was high time France curbed its public spending
Edouard Philippe has boldly stated it was high time France curbed its public spending and tackled its deficit.
The country’s new president, Emmanuel Macron, has said the issue was high on his list of priorities after taking office in May.
He views it as a crucial barrier to overcome in order to win favour with Germany and begin to reform the European Union.
Currently for every €125 (£109.79) France receives in taxes it spends €117 (£102.76), in contrast with Berlin which spends €98 (£86.07) for every €100 (£87.83) it receives.
In a speech to the National Assembly, Mr Phillipe said: "Who really believes this situation is sustainable?
“The French are hooked on public spending. We are dancing on a volcano that is rumbling ever louder.
“Like all addictions it doesn't solve any of the problems it is meant to ease.
The former investment banker said it was high time France embraced change
“And like all addictions it requires willing and courage to detox.”
Just last week an independent auditor pointed towards an eight billion funding shortfall in France’s budget this year, once again surpassing the EU’s cap of three per cent of national income.
Mr Phillipe said his aim was to reduce the deficit to below the EU’s cap this year.
Macron vows to create 'political change' during Versailles speech
We are dancing on a volcano
And he announced his target was to reduce public spending by three per cent of national income over five years.
During the same period he aims to slash the government’s tax income by one per cent.
He views it as a crucial barrier to win favour with Germany
In a bid to achieve this, corporation tax will be gradually reduced from 33.3 per cent to 25 per cent by 2022.
Mr Phillipe said: “France cannot remain the champion both of public spending and taxes.
“Businesses must want to set up and develop on our territory rather than elsewhere.”
Mr Phillipe said his aim was to reduce the deficit to below the EU’s cap this year
After Mr Macron’s win and his essential landslide in the regional elections to the French parliament, he has a comfortable enough majority and support to push through his policies.
In his own speech at the palace of Versailles, the former investment banker said it was high time France embraced change.