The Minister of Economy and Finance, Bruno Le Maire, ruled out on Tuesday financing the massive investments required by the ecological transition in France by resorting to public debt and taxes, as recommended by a report presented to the Government.
This report, commissioned by Prime Minister Elisabeth Borne from economist Jean Pisani-Ferry, estimates an additional 66 billion euros a year, including up to 34 billion in public funds, the investments needed to achieve a 55% reduction in gas emissions greenhouse effect compared to 1990.
The mayor more definitive than Béchu
To finance them, the document proposes resorting to public debt and introducing an exceptional tax on the financial wealth of the richest French.
Asked about the creation of a new tax, the Minister of Ecological Transition, Christophe Béchu, estimated this Monday that “it is not a taboo subject”. “The two options that are not good options in my opinion are the increase in taxes or the increase in our debt, which is already too high,” Bruno Le Maire swept into the RTL microphone.
On the contrary, the government’s policy is to “lower taxes (…) in a country that has the highest tax burden of all developed countries,” he insisted.
Mobilize savings from households, companies or even banks
The number two of the Government mentioned four ways to finance the “extremely high cost” of the transition to a decarbonized economy, already advanced within the framework of the green industry bill. It is about greening existing taxation and therefore reducing tax benefits on fossil fuels; mobilize French savings; get companies to finance the transition; and mobilize banks, including the European Investment Bank (EIB).
The report was published as Elisabeth Borne presented her plan on Monday to accelerate the decline in France’s greenhouse gas emissions by 2030.
Source: BFM TV
