PARIS (AP) — In his inaugural speech to Parliament on Tuesday, novel French Prime Minister Michel Barnier warned that “colossal” and skyrocketing debt was a “sword of Damocles” hanging over the finances of the European Union’s second-largest economy and announced the Belt-tightening and higher taxes to reverse the trend.
Tuesday’s opening of parliament and Barnier’s address sparked months of turmoil in the National Assembly, which is sharply divided in contrast to surprise elections three months ago that did not produce a clear winner.
Barnier’s speech outlining his political intentions represented a crucial first test for his novel minority government, which does not have a clear majority in parliament. The mood in the chamber was being closely watched for signs of how arduous opposition lawmakers want to make it for the 73-year-old veteran Conservative and EU Brexit negotiator to get things done and retain power. From the start of his speech, left-wing lawmakers who had vowed to try to topple his government as quickly as possible shouted jeers at him.
In his address, Barnier emphasized resolving France’s debt-ridden public finances as a priority. He made clear his aim to rein in spending, saying France had “a lot to do” but added: “We have to make do with little.” Barnier announced an “extraordinary” tax on France’s wealthiest individuals – However, did not provide any information about who exactly falls into this tax bracket. He also said that vast companies that make high profits would be required to pay additional “contribution costs”.
“The real sword of Damocles is our colossal debt,” Barnier said. “If we are not careful, it will bring our country to the brink of the abyss.”
France is under pressure from the European Union’s executive branch to reduce its debt.
Nevertheless, tax increases would contradict the fiscal philosophy of French President Emmanuel Macron, who consistently cut taxes when he still had a government with a clear majority in parliament.
Barnier said his government would seek to cut France’s deficit from a current estimated 6% of gross domestic product to 5% next year and below 3% by 2029.
To achieve this, he promised to cut government spending, spend money more “efficiently” and fight tax evasion and other fraud.
Barnier, who had promised a tough stance on migration, said he wanted to “better control” the number of people coming to France.
He proposed “easing” the detention of foreigners who are in the country illegally until deportation orders are implemented.
He said France would continue to carry out controls at its national borders in the passport-free area in Europe “for as long as necessary”.
In addition, Barnier suggested that the number of visas issued would be made dependent on other nations’ ability to provide consular documents to their citizens deported after entering France illegally. A similar move by Macron in 2022 triggered a years-long dispute with Morocco.
Barnier’s wide-ranging speech covered his plans to tackle issues as diverse as mental health and helping farmers with wind power and sexual violence.
The left-wing MPs kept up deafening comments throughout but failed to rattle the veteran politician. He responded to the heckling with wry humor and said his goal is to listen to and respect all lawmakers, “even if that respect is not always reciprocal.”
In parliamentary elections in June and July, the National Assembly was split into three main blocs, none of which had enough representatives to govern alone. Barnier, appointed by Macron last month in a hoped-for unifying role, must form alliances around policy proposals as he tiptoes through the changing political landscape and overcomes promised efforts by opposition lawmakers to unseat him. To form his government, Barnier primarily recruited ministers from Macron’s centrist alliance and the conservative Republicans.
The most vocal opposition to Barnier is a loose grouping of left-wing parties, the New Popular Front. As a coalition, it secured the most seats in the parliamentary elections in June and July, but fell low of a majority. In order to overthrow the novel government through a vote of no confidence, the New Popular Front would need the support of right-wing extremist lawmakers, who are currently taking a wait-and-see approach to Barnier.
Barnier described his address as a roadmap “for the two and a half years that lie ahead” until the next presidential election in 2027. “Never!” one lawmaker shouted back – reflecting widespread expectations that his government would not last that long would.
