Greening the economy, protecting the French from inflation and improving public finances: these are the three main objectives of France’s 2024 budget, presented by Bruno Le Maire, Minister of the Economy and Finance. In a post-health and energy crisis context, the government faces a major challenge to revive the economy while preserving budgetary stability.
After a period marked by exceptional measures to mitigate the effects of the crisis, the government is now seeking to make savings and reduce public spending. With a debt exceeding 3,000 billion euros and a deficit beyond the European standards, it is urgent to restore France’s financial credibility.
To achieve this, the budget provides for the gradual elimination of electricity bill relief measures for households and businesses, representing around 14.5 billion euros in savings. Reductions in employment policy support and a reform of unemployment insurance will also make it possible to achieve significant savings. In addition, tax measures such as the removal of the tax advantage for non-road diesel and the increase in the penalty on polluting vehicles will help finance the energy transition.
At the same time, the government is committed to protecting the French from inflation by indexing certain scales to inflation. The scale of income tax, pensions and social benefits will thus be revised upwards to compensate for the increase in prices.
Regarding public finances, the government aims to reduce the deficit from 4.9% of GDP this year to 4.4% in 2024, and to reach 2.7% in 2027, below the European limit of 3 %. However, despite these efforts, France’s debt will remain high, reaching 108.1% of GDP at the end of the five-year term.
To finance these measures and reduce the deficit, the government plans the creation of a new tax on motorways and airports, as well as measures aimed at accelerating the fall in prices in supermarkets thanks to anticipated commercial negotiations between large retailers. and its suppliers.
France’s 2024 budget represents a crucial step in the country’s economic recovery, while preserving financial stability. The objectives of greening the economy, protecting against inflation and improving public finances demonstrate the government’s desire to find sustainable solutions to face current economic challenges.