Friday

23rd Feb 2018

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.

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

"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.

EU leaders to kick off post-Brexit budget debate

EU-27 leaders will meet on Friday to draw up battle lines and possible fields of compromise over the EU's next seven-year budget - the first one after the UK leaves the bloc.

News in Brief

  1. Report: EU to increase sanctions on Myanmar
  2. Juncker 'worried' by Italian elections
  3. EU migration to UK at lowest since 2012
  4. MEP Andrieu will chair parliament pesticide committee
  5. Juncker's right-hand man warns of 'institutional blockage'
  6. Greek parliament to open probe on PMs and EU commissioner
  7. May gathers Brexit ministers to hammer out UK position
  8. Tajani asks Juncker for all EMA Brexit relocation documents

Stakeholders' Highlights

  1. EPSUMovie Premiere: 'Up to The Last Drop' - 22 February, Brussels
  2. Aid & Trade LondonJoin Thousands of Stakeholders of the Global Aid Industry at Aid & Trade London
  3. Macedonian Human Rights Movement Int.European Free Alliance Joins MHRMI to End the Anti-Macedonian Name Negotiations
  4. Mission of China to the EUChina-EU Tourism Year to Promote Business and Mutual Ties
  5. European Jewish CongressAt “An End to Antisemitism!” Conference, Dr. Kantor Calls for Ambitious Solutions
  6. UNESDAA Year Ago UNESDA Members Pledged to Reduce Added Sugars in Soft Drinks by 10%
  7. International Partnership for Human RightsUzbekistan: Investigate Torture of Journalist
  8. CESICESI@Noon on ‘Digitalisation & Future of Work: Social Protection For All?’ - March 7
  9. UNICEFExecutive Director's Committment to Tackling Sexual Exploitation and Abuse of Children
  10. Nordic Council of MinistersState of the Nordic Region 2018: Facts, Figures and Rankings of the 74 Regions
  11. Mission of China to the EUDigital Economy Shaping China's Future, Over 30% of GDP
  12. Macedonian Human Rights Movement Int.Suing the Governments of Macedonia and Greece for Changing Macedonia's Name

Latest News

  1. EU leaders to kick off post-Brexit budget debate
  2. Greek government's steady steps to exit bailout programme
  3. Frontex: Europe's new law enforcement agency?
  4. Poland and Greece broke EU environment laws, rules court
  5. Dutch MPs vote on ending 'Ukraine-type' referendums
  6. Corruption report: Hungary gets worse, Italy makes progress
  7. UK seeks flexible transition length after Brexit
  8. Commission defence of Barroso meeting leaves 'discrepancies'