Remedy for Economy, or Why France Will Introduce a "Solidarity Contribution"?

France is preparing to tighten its belt even further. Prime Minister François Bayrou has unveiled highly unpopular measures aimed at overcoming the budget deficit. As always, the austerity measures target the populace, yet they also plan to raise taxes and even abolish certain national holidays.

For the second consecutive year, the Fifth Republic faces economic and political turbulence. France is rewriting political records—by 2024, three Prime Ministers have already stepped down, and the current Prime Minister, François Bayrou, who assumed office in mid-December, commands a staggering approval rating—80% of the population disapproves of him.

The burden on the current premier is not light. He declared that the country is in mortal danger, as the national debt increases by €5,000 every second. By 2029, interest payments alone could reach €100 billion annually if no action is taken.

In response to this economic ailment, swift remedies were sought—prompting a tax hike. However, for now, the increase targets the wealthiest citizens.

If you earn well, you are expected to contribute to reducing the deficit. The specifics of the "solidarity contribution" will be decided by the parliament. Notably, France's 2024 budget has been labeled the heaviest since World War II, and it appears that this is only the beginning.

Valery Dvoinikov, political scientist (Belgium):

"Every time the French earn 100 euros, they owe the state 114 euros—that is, they owe more than they earn. The situation has become critical. Many call the current budget proposal, put forward by François Bayrou, a 'French rescue plan,' but others see it as a whip wielded against the people."

The budget plan also envisions restrictions on pension payouts, social benefits, and reductions in unemployment and sick leave payments.

French authorities are signaling that work will need to increase. Among the proposals is the abolition of two out of eleven national holidays. According to Bayrou, this move could save several billion euros in public funds.

This course of action places Bayrou on very shaky ground, as such measures are unlikely to earn him a warm welcome from the populace. Nevertheless, the Prime Minister is firmly convinced that without such steps, France risks a crisis reminiscent of Greece's 2008 meltdown.

Who will be cut, who will be taxed anew? Why is Paris tightening its belts? Why does the French government seem reluctant to spend on pensions, healthcare, vacations, and social benefits? These questions and more are explored in "Clear Politics."