New French Prime Minister warns of critical financial situation

France’s new prime minister, Michel Barnier, issued a stark warning on Wednesday regarding the country’s dire financial situation. Appointed by President Emmanuel Macron earlier this month, Barnier stressed that France’s budgetary condition is critical, with an alarming debt and deficit among the highest in Europe.

Critical Budgetary Situation

During an interview with the Agence France-Presse news agency, Barnier emphasized the urgency of the matter, stating that the budget hole necessitated immediate and responsible action.

This sobering assessment comes on the heels of a report from the head of the Court of Auditors, the supreme body for auditing government spending, who informed Parliament that France would not meet its target to lower the deficit this year. Furthermore, the country would need to identify an astonishing 110 billion euros in savings over the next few years to comply with E.U. budgetary rules.

Need for Swift Action

François Villeroy de Galhau, the governor of the French central bank, also weighed in on the matter, emphasizing that Canada would need to address three-quarters of the deficit through spending cuts and the remaining portion through new tax increases. This last point poses a significant challenge for President Macron, as he had previously pledged not to implement additional taxes.

In light of these developments, it is evident that France is facing a daunting financial task, and the new government will need to take swift and decisive action to address the budgetary crisis and restore fiscal stability.