French PM Promises to Reduce Taxes by 7B

France’s Prime Minister has promised to reduce the tax burden by around 7 billion euros ($7.98 billion) from next year by reigning in public spending.

Edouard Philippe said at the weekend the government would focus on reducing the budget deficit below the EU-agreed cap of 3 percent of economic output this year.

“We are going to do it without increasing taxes in 2017,” Philippe claimed, speaking to a convention of the delegates from France’s Le Republique en Marche (LREM) government.

Commentators had worried that the government’s commitment to meeting Brussels requirements would mean it fails to fulfill President Emmanuel Macron’s campaign pledge to cut taxes and boost business.

However, Philippe insisted that the government could do both simultaneously by cutting public spending.

“Taxes will fall starting from 2018 by about seven billion euros by reining in spending and implementing the president’s commitments coherently and over time starting with the 2018 budget bill,” Philippe said.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza