watch nowFrance's newly-installed government on Thursday presented a draft budget containing 60 billion euros ($65.6 billion) in tax hikes and spending cuts, as analysts warned the package may not be enough to stave off ratings downgrades for the economy.
The 2025 budget features a greater focus on tax-raising measures than some were expecting.
"The problem is when you have to find 60 billion, we have never found 60 billion in one year, it would be unprecedented, and that's why it's not very credible to find so huge an amount, especially with only a very fragile relative majority."
Tax focusThe policy mix underpinning the 2025 budget is "less skewed towards spending cuts and more geared towards tax increases than we anticipated," analysts at Goldman Sachs said in a note Friday.
French Minister for the Economy, Finance and Industry Antoine Armand arrives at the Elysee presidential palace to attend the weekly cabinet meeting, during which France's 2025 budget was presented, on October 10, 2024 in Paris.
Persons:
Camatte, CNBC's, Michel Barnier, Barnier, Goldman Sachs, Industry Antoine Armand, Ludovic Marin, Erik, Jan van Harn
Organizations:
Union, Goldman, Economy, Finance, Industry, Afp, Getty, CNBC, Rabobank
Locations:
France, Belgium, Natixis, Paris, Europe