French PM Threatens Austerity, Cuts Taxes, and Launches 50 Billion Euro Investment Plan
The recently elected French Prime Minister announced President Emmanuel Macron's budgetary plan to cut France's deficit. Jean-Luc Mélenchon denounced the measures, claiming they would destroy the French state.
The newly-elected President, who worked as an investment banker before coming to politics, couples these austerity measures with a fifty-billion euro investment program. Alongside this investment plan, President Macron plans to heavily reduce the corporate tax rate, claiming these measures that hope to increase revenue for the private sector.
The Prime Minister, Edouard Philippe, claimed the austerity measures were necessary because the French government had accumulated an unsustainable level of debt, implying the country was “dancing on a volcano.” He even referred to the current budget as an “addiction,” one that required France to “detox.”
President Macron, who comes from the private sector himself, appointed Prime Minister Edouard Philippe, a politician with a political career on the right. The Prime Minister stated that these austerity measures would include significant downsizing of jobs within the public sector, alongside cuts to tax loopholes and a review of housing spending.
What about the 50 billion dollars increase of private sector investments? The Prime Minister sharply refused to raise any taxes on the French people, declaring: “France cannot remain the champion both of public spending and taxes.” On the contrary, taxes in the private sector will largely be decreasing. The Prime Minister declared that the corporate tax rate would drop from 33 percent all the way down to 25 percent, meaning a large drop in revenue for the French government.
Despite these seemingly drastic measures, the right-wing opposition, Les Républicains, claimed the austerity did not go far enough. Although the newly-elected President painted himself on the center, these austerity measures came as an outrage to many of France, a 57 percent of whom refused to participate in the last election, citing political corruption and the disintegration of traditional parties. It's not uncommon for French citizens to take to the streets during such crises, meaning that Emmanuel Macron's austerity measures could provoke a major response from French citizens.
While the Prime Minister announced the austerity measures, the new President fired a missile from a nuclear submarine, a test of the country's nuclear capabilities. After Brexit, France will be the only country in the European Union with nuclear weapons. According to the French Constitution, the power to fire them rests in the hands of President Macron alone.
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