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New French Prime Minister Michel Barnier clashed with President Emmanuel Macron’s centrist camp over tax hikes, according to French media reports on Wednesday.
The disagreement centers around Barnier’s consideration of the tax increase, a departure from the previous government’s position.
Barnier, a former EU commissioner, cited the dire state of public finances as justification for his proposal, which drew criticism from Macron’s camp.
“The country’s budget situation, which we are now discovering, is very serious,” Barnier told French media. “This situation requires more than small talk. It requires responsibility.”
The political landscape in France remains unstable after the recent snap parliamentary elections, which failed to produce a clear majority or a coalition capable of forming a government.
President Macron appointed Barnier as Prime Minister two weeks ago with plans to present a new Cabinet this week.
Barnier’s predecessor, Gabriel Attal, who took over as president of Macron’s center-camp group, had requested a meeting with Barnier to discuss Barnier’s political direction.
However, reports indicate that this meeting was abruptly canceled on Wednesday morning.
Interior Minister Gérald Darmanin also expressed reservations about Barnier’s proposed tax increase aimed at higher earners and corporations.
Meanwhile, the European Commission has started deficit procedures against France due to the increase in the new debt level, making the goal of reducing the loan below the limit of 3% mandated by the EU even more improbable
France currently has a public debt equivalent to 110% of its gross domestic product (GDP), which places it among the weakest economies in the euro zone.