The governor of the bank of France, François Villeroy de Galhau, wished on Wednesday an effort of “all, starting with the most favored” to bring the important French public deficit below 3% of the gross domestic product (GDP) in 2029.
“Social and local spending is increasing by more than 2% per year … the effort must be shared and fair and, therefore, cares about everyone, starting with the most favored,” Les Echos told the newspaper.
He considered that it was necessary to stabilize the expenses outside inflation, because “with a close social model, our expenses are greater than 9 points of GDP to those of our European neighbors.”
“Ask all the French an effort”
Three renowned French economists, Olivier Blanchard, Jean Pisani-Ferry and Gabriel Zucman, estimated on Wednesday that the “Tax on Zucman” on multimillonates was the “most effective” solution to make the rich contribute more, on a platform published on the eve of the eve of the exam in the Senate of a bill in this direction.
Prime Minister François Bayrou, who must announce before July 14 his orientations for the next budget, said in May that he wanted to “ask all the French an effort.”
The government favors the reduction of spending to an increase in taxes to generate 40 billion euros in savings distributed among state, social and local security communities, and reduce the public deficit to 4.6% of GDP next year after the 5.4% expected in 2025.
This remains insufficient and estimated François Villeroy de Galhau, warning that French debt would increase up to 120% of GDP in 2027 with an interest for more than 100 billion euros in 2030.
Towards a “White Year”?
The 5.4% objective “is still attainable,” he judged, but “only the 3% deficit course (…) will stabilize this” debt ratio. “Therefore, it must be retained. This is the national interest,” he insisted.
Among the savings tracks that circulate is that of a budget frost (“” White “) that, according to him”, maybe he can play a role, in a context where inflation has decreased. “
The Government established in 2025 a temporary contribution applied to the richest homes. In 2026, he wanted to continue fighting fiscal optimization, which could take the form, according to them, of a “differential contribution in the heritage” exceeding 2 million euros, ensuring minimum inheritance taxes.
Source: BFM TV
