France's new left-wing alliance vows to raise government spending by €150 billion

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France's new left-wing alliance vows to raise government spending by €150 billion

France’s newly formed New Popular Front left-wing alliance will progressively lift annual public spending to 150 billion euros more than now, but will offset the increase with tax increases, alliance officials said on Friday.

The New Popular Front has said that, if elected in a snap two-round parliamentary election on June 30 and July 7, its first measures would include reversing President Emmanuel Macron’s pension reforms and scrapping a 2023 rise in the retirement age to 64 from 62.

It also aims to raise public sector wages 10% immediately and to boost housing subsidies by 10%, while making school lunches, supplies and transport free.

The extra spending this year would be offset by a tax on companies’ super-profits generating 15 billion euros ($16.03 billion). Restoring a wealth tax on the rich was expected to also yield 15 billion euros.

A second raft of measures next year would include a wave of teacher and healthcare hires and spending on building renovations and renewable energy.

“In the year of 2025, public spending could reach 100 billion euros,” senior alliance member Eric Coquerel told reporters, adding that tax increases would cover the increase and rise to 150 billion in 2026-2027 to offset further spending increases.

“Our logic is not to increase our programme by an increase in deficits,” Coquerel said.

(Reuters)


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