France has unveiled a draft budget for 2025 that aims to address a projected Social Security deficit of 16 billion euros.

Healthcare Expenditure

The government plans to control healthcare expenditure by setting a national health insurance expenditure target increase of just 2.8%.

Financing and Debts

To finance its spending and manage existing debts, France plans to raise a record 300 billion euros in 2025.

Income Tax Brackets

The government has proposed a 2% revaluation of income tax brackets for 2025 to protect the purchasing power of its citizens.

Wealthiest Households

Additionally, a "temporary and exceptional contribution" targeting the wealthiest households is set to be introduced.

Environmental Policies

The draft budget includes changes to environmental policies, such as imposing a new malus on combustion-powered vehicles and increasing the bonus for purchasing electric cars.

Tax on Share Buybacks

The government also plans to introduce a tax on share buybacks by large corporations.

Concerns and Credibility

The Haut Conseil des Finances Publiques (HCFP) has expressed concerns about the sustainability of the government's financial forecasts. The government aims to maintain credibility with financial markets and the European Union while balancing the needs of its citizens and the economy.