Immigration, taxes, Ukraine: French PM policy plan’s main takeaways

The new French prime minister’s address to the freshly-elected legislature’s opening session was a crucial test for his government, which is already feeling the heat of no clear majority in the parliament.

On Tuesday, right-wing former EU negotiator Michel Barnier faced heckling and backlash from left-wing lawmakers and immediate criticism from the far right, which has become a powerful force following the results of snap elections held in the summer.

Barnier — who has previously called for a moratorium on immigration — pledged a hardline stance on migration, calling for “better control” of the number of people coming to France.

He proposed to “facilitate” the detention of foreigners staying illegally in the country, pending the implementation of deportation orders. He said France will continue “as long as needed” to implement controls at its national borders in the passport-free area in Europe. 

In addition, Barnier suggested that the number of visas granted would be conditional on other nations’ ability to provide consular documents for their citizens being deported from France after arriving illegally.

A similar move by Macron prompted a year-long dispute with Morocco in 2022.

The debate around immigration in France has become further inflamed since a 22-year-old Moroccan man was named as the suspected attacker against a 19-year-old female student named Philippine. She was murdered and raped in an exclusive neighbourhood of Paris in late September.

In an interview with French broadcaster LCI on Sunday, Interior Minister Bruno Retailleau said there should be a referendum on the immigration question.

He expressed “regret” that the French constitution does not allow this. France currently cannot hold a referendum on immigration, as the issue is not within the scope of subjects on which such votes can be held.

Stand by Ukraine and ‘remain active’ in the Middle East

France “will remain at the side of the Ukrainian people,” Barnier said on Tuesday. He stressed that Ukrainians were fighting “to defend their sovereignty and freedom” and “shared values” with France and Europe.

He vowed to implement France’s multi-billion-euro plan to boost its military spending in the coming years, spurred by the war in Ukraine. France “will also remain active” in the Middle East, he added.

“The worsening situation in Lebanon … requires our full mobilisation with our partners in the region, the United States and Europeans, to put an end as quickly as possible to hostilities that are seriously threatening the stability of the entire region,” he said.

More taxation and less expenses

Another top priority for PM Michel Barnier is remedying France’s indebted public finances. In his speech, Barnier said his government will seek to reduce France’s deficit from an estimated 6% of Gross Domestic Product now to 5% next year and under 3% by 2029.

To do so, he promised to cut state expenses, spend money more “efficiently,” and fight tax evasion and other frauds. “The true sword of Damocles is our colossal debt,” he said. “If we are not careful, it will take our country to the edge of the precipice.”

The Prime Minister announced an “exceptional” tax on France’s wealthiest individuals, which French Budget and Public Accounts Minister Laurent Saint-Martin revealed would apply to households earning at least “€500,000 per year”.

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Speaking to French broadcaster France 2 on Thursday morning, he explained that this would amount to 0.3% of taxpayers of French taxpayers. He also said an extra contributory “effort” will be asked of large companies making big profits.

France is under pressure from the EU’s executive to reduce its debt. Still, tax hikes would go against the fiscal philosophy of French President Emmanuel Macron, who consistently cut taxes when he still had a government with a clear majority in parliament.

Barnier also said he aims to curb spending, saying France has “much to do,” but “must do with little”.