Keynote Speech

France, Barnier announces wealth for the richest

In order to reduce the 'colossal' debt, the prime minister proposes incisive spending cuts and a contribution from big business and large assets. Macronians are critical

by Riccardo Sorrentino

Il primo ministro francese Michel Barnier

4' min read

4' min read

"Let us take care of the République, it is weak. Let us take care of Europe, it is necessary. Let us take care of the French and the French people, who are asking us to overcome our differences'. In a continuously rowdy Assemblée, at the initiative of the left-wing deputies of France Insoumise, new Prime Minister Michel Barnier presented the programme of the most difficult government in France's recent history. Difficult because of the immediate challenges he will have to face, difficult because of the tensions that simmer under a minority executive, which often require him to 'correct' the stances of the various ministers.

"On the brink of the precipice"

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"I ask a lot from you, with little, and starting from afar": quoting Charles de Gaulle's speech from London in May 1942, Barnier immediately faced two 'swords of Damocles'. The first is that of the public accounts that demand to be restored: 'We are on the brink of the precipice,' Barnier said. The prime minister has announced that the deficit will fall to 5 per cent in 2025 and may fall below 3 per cent in 2029, but not very quickly.

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Expenditure cuts, taxes on the rich

Two-thirds of the manoeuvre that will be presented in a few days will consist of spending cuts (with the fight against avoidance, but also 'the illusion of subsidising everything'), but there will be no lack of tax increases: for the very large companies that make significant profits, "without damaging our competitiveness" and for the wealthiest. "There are serious and serious choices to be made," Barnier told MPs. The second sword of Damocles concerns the environmental debt, which is close to Barnier's heart, who was minister for ecology in the 1990s. The nuclear option is confirmed, but so is the commitment to renewable energies. 'Never sacrifice the future for the present,' he said, quoting former radical prime minister Pierre Mendés France.

Re-thinking pensions and proportionality

Barnier called for a method, which is affected by the minority nature of his government: respect for all political forces "even if this respect will not always be reciprocal", he said referring to the constant protests - which the prime minister did not allow him to interrupt - from the extreme left. The issue of proportional suffrage, which is much debated at the moment, will be addressed; and pensions will also be reconsidered, but respecting the financial resilience of the system.

No second thoughts on abortion and marriage for all

In a political debate that has often spoken of 'red lines' not to be crossed ('sometimes very red lines', the prime minister joked) Barnier wanted to emphasise his own. "There will be no tolerance towards racism and anti-Semitism. There will be no tolerance of discrimination against women. There will be no tolerance of communitarianism. There will be no caving in on the defence of secularism. None. There will be no restriction of freedoms won over the years (the explicit reference is to abortion), no questioning of the law on marriage for all, nor of the death penalty. Clear answers to the controversies, certainly not empty ones, of recent days.

Increase the minimum wage

Government action will revolve around a few priority areas. The first is the living standards of the French. Barnier has announced a revaluation of the minimum wage by 2 per cent from November, while cases where wages remain below the minimum will be rapidly addressed. For housing, there are plans to prolong the zero rate for first homes, while the issue, strongly felt by the French - as the protests of the Gilets Jaunes have shown - of transport will be addressed. The second area will be that of quality public services, starting with health. The problem of the 'medical desert' will be addressed, through a 'Hippocrates Programme' to help French and foreigners study in exchange for a period of activity in territories 'abandoned' by the medical services.

Security and the Rule of Law

He could not miss a building site on everyday safety, the most sensitive issue. It is necessary to address, said Barnier, the issue of violence against minors, and their punishability; and that of sanctions: 'The French ask us, finally, that the punishments are really enforced. To this end, new prisons will be built, especially for shorter sentences. In any case, Barnier was keen to clarify: 'The firmness of the penal policy that the French are asking us for is inseparable from respect for the rule of law and the principle of independence and impartiality of justice, to which I am very personally, deeply and definitively attached,' he said, distancing himself from his Interior Minister, Bruno Retailleau, according to whom 'the rule of law is neither intangible nor sacred' (phrases later 'corrected' by a later communiqué).

"The Republican duty of integration"

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Very sensitive, socially and politically, is also the issue of immigration. "We no longer control our immigration policy satisfactorily" and in this way the "republican duty of integration" of immigrants also becomes weaker. Visa requirements and detention times for illegal immigrants will become more stringent. In foreign policy, along with some references to a 'simpler' Europe Barnier confirmed support for Ukraine and the government's focus on the Middle East, recalling the victims of 7 October and the civilian casualties among the Palestinians and returning to the call for a ceasefire in Gaza.

The Macronian reserves

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The problems that Barnier will have to face became immediately apparent when Gabriel Attal, president of the Ensemble pour la République group, Emmanuel Macron's party and, in a sense, the government's 'majority shareholder', spoke in the ensuing debate. Attal defended the actions of the Macronian governments and criticised the budget manoeuvre. On taxes for the rich, he called for 'targeted interventions, limited in time', recalling that for his group, the method to restore the budget is to have 'less spending but certainly not more taxes'. Also on taxes for the very large corporations, Attal recalled that in this way 'millions of jobs and billions of subcontracting companies can be threatened'.

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