French President Emmanuel Macron is on target to meet the euro zone’s public sector deficit target of below 3% of France’s GDP.
On Friday, French finance minister Bruno Le Maire stated that he will not introduce any new taxes during the French President Emmanuel Macron’s five-year mandate which runs upto 2022.
The sizable housing tax, which Bruno Le Maire is steadily reducing will be ultimately scrapped once a way has been found to ensure local authorities are compensated for the expected revenue loss of around 20 billion euros.
“There will be no new taxes during the mandate,” said Le Maire to BFM news television channel.
Macron, 40, a former investment banker had promised to significantly shrink the country’s public sector deficit and meet the euro zone’s agreed target of below 3% of the country’s GDP.
To that end public spending is likely to fall especially since Le Maire does not want to introduce any new taxes.
To help finance state projects, Le Maire will be banking on stronger economic growth.
“We’re not going to scrap one tax only to invent another in its place,” said Le Maire. “You cannot put money in French people’s pockets and take it back with the other hand. There will be no creating of new taxes.”
The country’s central bank expects France’s GDP, which grew at around 1.8% in 2017, its strongest since 2011, to continue to expand at around the same rate over the next 3 years.