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French Government Unveils Controversial 2025 Budget with Major Tax Hikes

The new budget aims to reduce France's deficit but faces political challenges and potential economic risks.

  • The 2025 budget proposes €60 billion in fiscal adjustments, with a focus on tax increases and spending cuts.
  • Key measures include additional taxes on high-income households and large corporations, alongside cuts in healthcare and local government spending.
  • The budget aims to reduce the deficit from 6.1% to 5% of GDP by 2025, with a long-term target of 3% by 2029.
  • Critics warn of potential economic growth impacts and the risk of further credit rating downgrades.
  • Political tensions are high as the government, lacking a strong majority, faces debates and possible amendments in parliament.
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