The interim government of France will submit to Parliament an emergency financial bill that provides for the preservation of the 2024 tax policy and minimum government spending. This solution is temporary and serves more to maintain the status quo than to solve long-term economic problems. The uncertainty is caused by the lack of a clear majority in the National Assembly. The opposition agrees to support temporary measures, but remains divided on long-term solutions. Barnier's plan to reduce the deficit to 5% in 2025 has faced resistance due to the need to raise taxes and cut spending by 60 billion euros. Macron will soon appoint a new prime minister, who will not only form a cabinet, but also develop a full-fledged budget. This lengthy process can have an impact on the economy and taxes. Outgoing Budget Minister Saint Martin warns of a possible increase in the deficit, while Marine Le Pen is confident of adopting the budget in early 2025 without major tax adjustments. The situation remains difficult, and much will depend on the next political steps.
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