National Rally to Present Counter-Budget Amid Government Tax Increases
The National Rally (RN) is set to unveil a 'counter-budget' this Wednesday, coinciding with the committee examination of the 2025 finance bill. RN deputy Thomas Ménagé has labeled the current government budget as 'absolutely unacceptable,' highlighting significant tax increases that infringe on 'very clear red lines.' These include hikes on electricity, medical consultations, and air transport, as well as proposed increases on gas taxation by Minister Agnès Pannier-Runacher.
Ménagé emphasized that the RN's objective is to 'bring the government back to reason,' asserting that they will utilize all parliamentary time to contest the government's fiscal strategies. The RN's economic program faces scrutiny from experts who deem it costly and ineffective, yet the party remains resolute in its stance against the government's proposals.
Government's Taxation Strategy Under Fire
The government's intention to increase gas taxation, announced by Minister Pannier-Runacher, is part of a broader strategy to enhance taxation on fossil fuels. This move is aimed at aligning public policies with decarbonization goals by ensuring that carbon solutions are not cheaper than decarbonized alternatives. The proposed measures are expected to generate approximately 1.5 billion euros for the state budget.
Concerns arise from stakeholders in the energy sector, who argue that the increase in electricity taxation could hinder the electrification efforts necessary for transitioning away from fossil fuels. The government's plan to phase out the electricity tariff shield, previously implemented to alleviate energy costs, further complicates the fiscal landscape for consumers. As the RN prepares to present its counter-budget, the debate over the government's fiscal approach intensifies, reflecting broader tensions in French economic policy.
