Bruno Le Maire once again ruled out, this Saturday, June 1, any tax increase next year, the day after the downgrading of France’s sovereign rating by the S&P agency due to the country’s chronic deficits. “There will be no tax increase” in 2025, declared the Minister of Economy and Finance on BFMTV. This measure “is not part of the range of options” of the government, he insisted.
Asked about a possible deindexation of retirement pensions and social benefits to inflation next year, a potential savings route, the Bercy tenant replied that no decision had been taken. “For 2025 no decision has even been prepared yet since I will prepare them with the oppositions”, he clarified with a view to the next finance bill, indicating also that he was going to “look at all the options which make it possible to restore public finances in 2027.
The minister highlighted the 10 billion euros in savings in state spending decided at the start of the year, and his desire to seek 10 billion additional cuts in 2024.
“I saved the factories, the restaurateurs, the hoteliers…”
The government finds itself under pressure after the downgrade on Friday of its sovereign debt rating by the S&P rating agency, from “AA” to “AA-“, the threat of which had been looming for several quarters. To justify its decision, S&P explains that “French public debt as a proportion of GDP will increase due to larger than expected deficits in 2023-2027”, a darker vision than during its previous analysis, in December.
Bruno Le Maire once again justified, in a very personal tone, the widening deficits since 2020 by expenses linked to the Covid crisis and the energy tariff shield. “If today we have a high level of debt, that’s why? It’s because I saved the French economy,” underlined the minister. “I saved the factories, I saved the restaurateurs, I saved the hoteliers, I saved the world of events, I saved jobs, skills, the aeronautical industry,” he said. he listed, adding to the list that he was proud to have also saved Renault and Air France.