Pan Sen Macro: France may increase taxes and reduce spending

On September 26, Panson macroeconomist said that France’s new government will face tax increases and spending cuts when it unveils its budget plan in the coming weeks. France’s government led by Prime Minister Barnier will submit a fiscal plan to the National Assembly in early October, tasked with cutting the deficit from its high level and climbing it. Deep cuts in government spending are sure, but they are difficult to implement quickly. Ministers are likely to raise taxes on wealth, and possibly on income taxes and corporate profits. France needs to cut its deficit sharply to maintain “a little trust in its finances from the EU and the market.”