Thursday

28th Mar 2024

Thousands protest against French austerity budget

  • French leftists are accusing Hollande of signing up to the Merkel-Sarkozy austerity pact. (Photo: philippe leroyer)

French President Francois Hollande faced his first serious public backlash after up to 50,000 lined the streets of Paris on Sunday (30 September) in protest against his €37 billion austerity budget.

Organisers of the event, which brought together around 60 left-wing groups, claimed that 50,000 protestors took to the streets to denounce the cuts programme.

Read and decide

Join EUobserver today

Get the EU news that really matters

Instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

"Today is the day the French people launch a movement against the politics of austerity," said the Front de Gauche president, Jean-Luc Mélenchon, who finished fourth in the Presidential elections.

On Tuesday (2 October) deputies in the National Assembly will debate the fiscal compact, with a number of members from the ruling Socialist and Green parties expected to defy the government's majority.

French prime minister Jean-Marc Ayrault accused the protesters of jeopardising the French economy and the stability of the euro. Opposing the fiscal compact would “risk aggravating the crisis”, he said, adding that “the ambiguity of saying 'non' is also something that could lead to the end of the euro."

The protest came days after President Hollande unveiled a package of spending cuts and tax hikes to plug a €37 billion hole in the country's public finances. The package is supposed to reduce France's budget deficit to 3 percent in 2013 from 4.5 percent this year, bringing in €30 billion for the treasury.

As expected, the budget included a new 75 percent top tax rate on those earning over €1 million per year, which opponents claim will see thousands of France's richest people move to the UK and elsewhere for tax purposes. Hollande's budget has also shied away from making any cuts to government jobs.

The budget includes €25 billion of cuts in government spending alongside a further €20 billion in extra taxes levied on businesses and the rich.

Statistics revealed last week that France’s national debt to GDP ratio had risen to 91 percent of GDP, a level described as “critical” by Finance Minister Pierre Moscovici, and which is far higher than the 60% threshold in the EU's Stability and Growth Pact. The country also lost its coveted AAA credit rating in January.

During his election campaign, Hollande had promised to re-open talks on the fiscal compact treaty devised by former President Nicolas Sarkozy and German Chancellor Angela Merkel. The treaty, which was agreed at a summit in December 2011, foresees a balanced budget rule for national constitutions.

However, Hollande is now expected to focus on securing a detailed EU growth and jobs plan, including front-loading the use of EU structural funds, project bonds and a youth guarantee scheme.

France adopts 'combat budget' for 2013

France's Socialist government on Friday unveiled €30bn worth of spending cuts and tax hikes, including a 75 percent tax rate on millionaires.

Hollande: '€30 billion must be found'

French Socialist President Francois Hollande has outlined a two-year plan to overhaul the country's stagnating economy and to boost employment.

Opinion

EU Modernisation Fund: an open door for fossil gas in Romania

Among the largest sources of financing for energy transition of central and eastern European countries, the €60bn Modernisation Fund remains far from the public eye. And perhaps that's one reason it is often used for financing fossil gas projects.

Latest News

  1. German bank freezes account of Jewish peace group
  2. EU Modernisation Fund: an open door for fossil gas in Romania
  3. 'Swiftly dial back' interest rates, ECB told
  4. Moscow's terror attack, security and Gaza
  5. Why UK-EU defence and security deal may be difficult
  6. EU unveils plan to create a European cross-border degree
  7. How migrants risk becoming drug addicts along Balkan route
  8. 2024: A Space Odyssey — why the galaxy needs regulating

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Join EUobserver

EU news that matters

Join us