France to increase taxes on big companies and wealthiest individuals

France's prime minister says the country's "largest companies will have to play their part" in taking more of the tax burden to deal with the country's spiraling deficit.

Taxes in France are among the highest in the world, and Michel Barnier said he would pursue an "exceptional contribution" from the richest people in France.

Barnier argued that reducing government spending and introducing more efficient spending policies will be two of the other "remedies" he plans to use to improve the health of the French economy.

In his first major speech since taking office, Barnier said he wanted to "resume the dialogue" over the contentious 2023 pension reforms. He added that "listening and dialogue" will be necessary in what is a bitterly divided parliament.

Barnier said that his government's aim was to bring the deficit down to 5 percent of GDP in 2025, and to 3 percent in 2029, in line with European commitments. He also said the minimum wage would increase by 2 percent from November 1.

On the environment, he called for more investment in biofuels for the aviation sector, aiming for renewable energy to account for 100 percent of the energy needs in the country's overseas territories.

Maiden speech as prime minister

Barnier addressed France's 577 lawmakers in the National Assembly on Tuesday to map out his plans for the future directions and policies of his government. The French parliament was sitting for the first time since the snap general election in July.

President Emmanuel Macron spent all summer weighing up options for the next prime minister, and eventually chose Michel Barnier.

At 73 he is France's oldest premier, and although he is from the center-right Republicans party, most of the cabinet ministers he appointed are either from Macron's Ensemble party or from parties allied to the president.

He did name several prominent right-wing politicians to some of the top posts in his coalition, a move that hinted that Barnier's political course going forward would have a rightwards tilt.

Barnier may not have to wait long to see if his minority government can last more than a few weeks in office.

That is because the New Popular Front - the leftist alliance of four parties that came first in the election - has vowed to submit a vote of no confidence in the government as soon as it can.

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