French President Emmanuel Macron has stated his intention to continue cutting taxes for businesses and the middle class, despite recent warnings about France's growing debt and budget deficit. In an interview with L'Opinion, Macron argued that lowering taxes on the middle class is necessary to give more credibility to work and support those who are not wealthy enough to live well but too wealthy to receive support. Regarding corporate taxes, he expressed his desire to improve industrial jobs or jobs for craftsmen and tradesmen.
However, last month, the Bank of France Governor, Francois Villeroy de Galhau, warned Macron that the government must stop cutting taxes unless it has other ways to finance revenue shortfalls. France has a bigger-than-expected budget deficit compared to before the surge in energy prices that triggered public support to households, leading Fitch Ratings to recently cut France's credit rating to AA- from AA, with a stable outlook. Fitch highlighted the political risk resulting from Macron's recent efforts to raise the minimum retirement age, which sparked mass protests and fractured parliament, making it harder to get the necessary support for future reforms.
Macron hit back at Fitch's analysis, stating that "Fitch is deeply wrong in its political analysis" and emphasizing that his government has passed numerous laws with its majority. However, Macron's absolute majority was lost during legislative elections last year, forcing him to make more compromises to govern. Despite failing to gain conservative support for his pension reform, which traditionally favors working longer, Macron is trying to reset his presidency amid ongoing protests and strikes. He has announced new investments to promote cycling and reform professional training, and this week and next, he is focusing on announcing foreign investments and steps to encourage the industrial sector in France.