French PM vows to tax rich in first policy speech

France's new Prime Minister Michel Barnier outlined his agenda on Tuesday in a major speech to lawmakers. His key proposals included taxing the wealthy, increasing the minimum wage and tightening immigration policies.

Barnier highlighted the importance of reducing France's budget deficit, which he aims to lower to 5 percent of GDP by 2025, with a target of reaching 3 percent by 2029, two years later than previously planned.

"The sword of Damocles hanging over us is our colossal financial debt," Barnier said in his speech, warning that France's growing deficit was weakening its position within Europe.

Barnier faces the challenge of leading a government without a parliamentary majority, requiring him to manage tensions within his coalition while trying to set a clear path forward for France.

"When you deliver a general policy speech, the main aim is to inform public opinion and outline the government's direction," said Roman Abreu, a communications expert, during an interview on the French public television channel LCP on Tuesday.

In his speech, Barnier emphasized the need for stricter immigration policies, expressing concern that France was no longer meeting its "integration objectives" due to a lack of control over migration.

He vowed to take a "ruthless "approach to tackling human trafficking, particularly in cases where traffickers facilitate illegal crossings over the English Channel and the Mediterranean Sea.

One of the central points of Barnier's policy agenda was an early increase in France's minimum wages. He confirmed that the SMIC, France's national minimum wage, would rise by 2 percent on Nov 1, two months earlier than expected.

On Thursday, Budget Minister Laurent Saint-Martin announced on France 2 TV that the government's request for an "exceptional "contribution from the "wealthiest "French citizens in the 2025 draft budget would impact only "0.3 percent" of households.

Economic reforms

"Michel Barnier comes across as very conservative, mentioning fiscal justice only two or three times. If he truly increases taxes on big corporations, I would applaud with both hands," explained economist Julia Cage on This Evening on France TV on Wednesday.

In terms of environmental action, Barnier highlighted a recent reduction in France's greenhouse gas emissions as evidence that progress could be made. He outlined a commitment to expanding the country's use of nuclear energy, with plans to develop new nuclear reactors.

Addressing the contentious issue of pension reform, Barnier offered to reopen discussions with trade unions.

"What's unfair is the lack of distinction between pensioners. We're hitting a pensioner with a small pension the same way as a wealthier one," said Cyril Chabanier, president of the CFTC union, on RMC Radio.

The writer is a freelance journalist for China Daily.