More taxes for large companies, corrections to the controversial pension reform and more border controls based on the German model: These are some of the major lines of the new French minority government that conservative Prime Minister Michel Barnier presented in the National Assembly on Tuesday. “We will make dialogue and compromise our government’s guidelines,” said the former EU Brexit negotiator. “Compromise is not a dirty word,” he emphasized.
Almost three months after early parliamentary elections that produced a heavily divided National Assembly, France has a new government but still no coalition agreement. Instead, in his hour-long speech to MPs, Barnier set out his plans for his term in office – which, however, can end at any time if the right-wing populists and the left-wing camp vote together against the government in a motion of no confidence.
Two “swords of Damocles” hang over France, said Barnier, referring to the country’s financial situation and the ecological debt burden that the current generation is passing on to the next generation.
The Prime Minister is now targeting the EU’s target of a deficit of a maximum of three percent of gross domestic product for 2029 – two years later than previously planned. Next year it should be reduced to less than five percent. “It is our massive financial debt burden – 3,228 billion euros – that, if we are not careful, will lead our country to the brink of the abyss,” Barnier said.
The first answer to this is austerity measures, said Barnier. In addition, it will also be necessary to “demand a contribution from large companies that make high profits,” he said. However, this should not question France’s competitiveness. In addition, “the richest French people” should make a “special contribution”. The Prime Minister did not explain whether he wanted to reintroduce the so-called rich tax.
With a view to the fight against climate change, Barnier reiterated President Emmanuel Macron’s long-standing plans to further expand both nuclear power and renewable energies. As the largest property owner, the state must also set a good example when it comes to thermal insulation of buildings.
With regard to the controversial pension reform, which raised the retirement age from 62 to 64, Barnier appeared ready to make concessions. “We will propose to the social partners to talk about sensible and fair adjustments,” he said.
Barnier was more cautious than his minister about immigration policy, which the conservative Interior Minister Bruno Retailleau would like to tighten. He announced both more efficient processing of asylum applications and an extended period of stay in deportation centers – a response to the case of a student who was presumably killed by a Moroccan who had been released from the deportation center. France also wants to continue to control its borders, “as European rules allow and as Germany does,” he said.
Barnier did not go into further detail about the German-French partnership. “France plays an important role in reforming Europe,” he said. He only briefly mentioned France’s support for Ukraine and efforts for a ceasefire in the Middle East. Foreign and security policy issues remain in the hands of President Macron.
“This is the plan for the next two and a half years,” Barnier summed up, to which the interjection of “Never!” rang out. The left-wing camp had previously announced that it would submit a motion of no confidence this week. They continue to protest against the fact that, as the winners of the election, they will not appoint the Prime Minister.
In an initial reaction, the right-wing populist parliamentary group leader Marine Le Pen called for a new immigration law to reinstate all the tightening measures that the Council of State had censored in an earlier version. She made it clear that her group would otherwise be inclined to vote together with the left in a vote of no confidence.
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