The French government has agreed to scrap a planned electricity tax hike, bowing to pressure from the right-wing National Rally party. The decision is aimed at securing crucial support to stave off a potential no-confidence vote.
Prime Minister Michel Barnier confirmed the concession during an interview with Le Figaro.
He announced plans for a “14% reduction in electricity prices next year” and declared that the government would “cancel the planned electricity tax hike,” a measure that would have generated €3 billion annually for the state budget.
Jordan Bardella, leader of the National Rally, described the decision as a win for his party. However, he warned that “other red lines remain.”
Among the additional demands, Bardella called for an end to cuts in reimbursements for specific medications, the introduction of a “moratorium on all new tax increases,” and the re-indexation of pensions starting January 1.
“These measures, based on common sense, are realistic, quickly applicable, and expected by the overwhelming majority of French citizens. The Prime Minister cannot ignore them. He has only a few days left,” Bardella emphasized.
Discussions over France’s 2025 budget remain contentious. The proposed budget seeks to address the country’s mounting public deficit through €60 billion in tax increases.
With no parliamentary majority, Barnier’s government is caught in a delicate balancing act, relying on the support of either the right-wing or the Socialist faction to push through the budget.
