Grapevine

PM Barnier tells parliament France must trim its ‘colossal’ debt

New French PM promises ‘targeted tax hikes’ and spending cuts in order to cut budget deficit, national debt.

France’s new Prime Minister Michel Barnier has outlined the policy programme of his new government, seeking to shore up its fragile position just three weeks after taking office.

In his first policy speech on Tuesday, Barnier said that France must slash its budget deficit and trim its tottering debt pile. He also vowed a combination of higher taxes and spending cuts.

Barnier, appointed last month, faces the challenging task of plugging a huge hole in public finances at a time when the fragmentation of parliament and infighting in his minority government will make it hard to push through reforms.

“The sword of Damocles hanging over us is our colossal financial debt,” Barnier told French lawmakers on Tuesday.