PARIS: France’s government is to deliver its 2025 budget on Thursday with plans for 60 billion euros ($65.68 billion) worth of tax hikes and spending cuts to tackle a spiralling fiscal deficit.
Prime Minister Michel Barnier’s new government is under increasing pressure from financial markets and France’s European Union partners to take action after tax revenues fell far short of expectations this year and spending exceeded them.
But the budget squeeze, equivalent to two points of national output, has to be carefully calibrated to placate opposition parties, who could not only veto the budget bill but also band together and topple the government with a no-confidence motion.
Lacking a majority by a sizeable margin, Barnier and his allies in President Emmanuel Macron’s camp will have little choice but to accept numerous concessions to get the budget bill passed, which is unlikely before mid to late December.
The far-right National Rally, whose tacit support Barnier needs to survive any no-confidence motion, has already helped derail a government proposal to postpone a pension increase by six months to save 4 billion euros.
Members of Macron’s party are also loathe to see the president’s legacy of tax-cutting go up in smoke, with his former prime minister Gabriel Attal saying on Wednesday: “The budget is light on reforms and too heavy on taxes.”
Barnier has said he will spare the middle class and instead target big companies with a temporary surtax and people earning over half a million euros per year.
All taxpayers will nonetheless be hit by plans to restore a levy on electricity consumption to where it was before an emergency reduction during the 2022-2023 energy price crisis.
The government has said the budget bill will reduce the public deficit to 5 percent of gross domestic product (GDP) next year from 6.1 percent this year — higher than almost all other European countries — as a first step toward bringing the shortfall into line with an EU limit of 3 percent in 2029.
While tax hikes will make up one third of the 60 billion euro budget squeeze, the rest will come from spending cuts, with 20 billion cutting across France’s ministries and the rest hitting separate spending on welfare, health, pension and local government budgets.
France’s borrowing costs surged after Macron called a snap parliamentary election and his centrist party then lost to a left-wing alliance. Financial markets are likely to pay close attention to whether the budget can get through parliament without being watered down too much.
The budget will also face scrutiny from the European Commission, which has subjected France to an excessive deficit procedure for falling foul of the EU’s fiscal rules.
French government to present 2025 belt-tightening budget
https://arab.news/jxgsg
French government to present 2025 belt-tightening budget
- Budget squeeze aims to cut deficit to 5 percent of GDP next year
- Concessions likely to get budget through divided parliament
Lawsuit challenges Trump administration’s ending of protections for Somalis
- The lawsuit cites a series of statements Trump has made describing Somalis as “garbage” and “low IQ people” who “contribute nothing.”
BOSTON: Immigrant rights advocates filed a lawsuit on Monday seeking to stop US President Donald Trump’s administration from next week ending legal protections that allow nearly 1,100 Somalis to live and work in the United States. The lawsuit, brought by four Somalis and two advocacy groups, challenges the US Department of Homeland Security’s decision to end Temporary Protected Status for Somali immigrants, whom Trump has derided in public remarks. Outgoing Homeland Security Secretary Kristi Noem in January announced that TPS for Somalis would end on March 17, arguing that Somalia’s conditions had improved, despite fighting continuing between Somali forces and Al-Shabab militants. The plaintiffs, who include the groups African Communities Together and Partnership for the Advancement of New Americans, in the lawsuit filed in Boston federal court argue the move was procedurally flawed and driven by a discriminatory, predetermined agenda.
The lawsuit cites a series of statements Trump has made describing Somalis as “garbage” and “low IQ people” who “contribute nothing.”
The plaintiffs said the administration is ending TPS for Somalia and other countries due to unconstitutional bias against non-white immigrants, not based on objective assessments of country conditions.
“The termination of TPS for Somalia is racism masking as immigration policy,” Omar Farah, executive director at the legal group Muslim Advocates, said in a statement.
DHS did not respond to a request for comment. It has previously said TPS was “never intended to be a de facto amnesty program.”
TPS is a form of humanitarian immigration protection that shields eligible migrants from deportation and allows them to work. Under Noem, DHS has moved to end TPS for a dozen countries, sparking legal challenges. The administration on Saturday announced plans to pursue an appeal at the US Supreme Court in order to end TPS for over 350,000 Haitians. It also wants the high court to allow it to end TPS for about 6,000 Syrians.
SOMALI COMMUNITY TARGETED
Somalia was first designated for TPS in 1991, with its latest extension in 2024. About 1,082 Somalis currently hold TPS, and 1,383 more have pending applications, according to DHS. Somalis in Minnesota in recent months had become a target of Trump’s immigration crackdown, with officials pointing to a fraud scandal in which many people charged come from the state’s large Somali community. The Trump administration cited those fraud allegations as a basis for a months-long immigration enforcement surge in Democratic-led Minnesota, during which about 3,000 immigration agents were deployed, spurring protests and leading to the killing of two US citizens by federal agents.
In November, Trump announced he would end TPS for Somalis in Minnesota, and a month later said he wanted them sent “back to where they came from.”
The US Department of State advises against traveling to Somalia, citing crime and civil unrest among numerous factors.
