France to step up tax cuts while reducing deficit
The French government is studying ways it could step up tax cuts starting from next year while also carrying out budget savings to keep deficit reduction on track, a source in the prime minister’s office said on Monday.
Prime Minister Edouard Philippe had suggested last week that cuts in wealth and property taxes promised by President Emmanuel Macron would be postponed after an audit showed the public accounts to be running billions of euros over budget.
But the government has since rowed back after economists and some business leaders flagged concerns about the economic impact of delaying the cuts.
“The president and the prime minister’s objective is for tax measures to be undertaken in the 2018 budget bill to trigger a supply-side shock and boost confidence,” the source said.
“To do this, the government is studying solutions to step up tax cuts starting from 2018, especially on property taxes and the wealth taxes,” the source said, adding the government still aimed to meet EU deficit target.