France ‍Targets Tax Fraud ‍to Curb Deficit Amid Economic Concerns

PARIS (AP) — Teh French government is intensifying its fight against tax and social fraud as it seeks to address a growing public deficit without raising taxes. Minister of Public Accounts Amélie de Montchalin revealed on Tuesday, April 15, that authorities detected 20 ⁤billion euros in fraudulent activity in 2024, with‍ the potential to recover 13⁤ billion euros.

Aspiring Goals for 2026 Budget

Looking ahead to the 2026 budget, Montchalin has ⁢set a target of recovering 15 billion euros through enhanced fraud prevention measures. ⁢The government aims⁣ to achieve 40 billion euros in savings by 2026 to alleviate the nation’s public debt.

budgetary Situation⁢ Sparks Alarm

Earlier Tuesday,François bayrou,a leading French politician,presented a concerning assessment of the country’s financial state during a meeting of‍ a “budget alert committee” in Matignon.

Union Criticism: “Anxiety-Provoking Communication”

Following the meeting, Sophie Binet, the secretary general of the CGT, a major⁣ French trade union, criticized what she described as “an anxiety-provoking communication⁢ operation” designed to create a climate where workers are expected to make sacrifices. Binet argued that the⁢ government is hesitant to increase taxes on wealthier individuals and corporations, ⁤stating, “The government has a taboo: it is that of revenues. You have to take ⁤money where it is indeed.‍ Though the government refuses to increase ⁣taxes for the wealthy.”

Deficit Concerns Rise

Montchalin warned that the deficit could reach 5.7% by year’s⁢ end if immediate ‍action is not taken. She cited the impact of American ⁢customs duties as a ⁤contributing factor to the ‍economic uncertainty.The government plans to cancel up to 3 billion euros in expenses from the 2025 budget. Montchalin also indicated that an additional‍ 2 billion euros in potential expense cancellations are being considered should⁤ economic conditions ⁤worsen.

bayrou: production and Work Ethic Under Scrutiny

Bayrou emphasized the need for national awareness regarding ⁢the economic and budgetary challenges to support decisive action ⁤in restoring public finances. “We lack resources, as we do not produce enough and we do‍ not work enough,” he stated. He also stressed the importance of reducing France’s reliance on foreign sources for agricultural, industrial, and intellectual resources.

Government aims for Deficit Reduction

Minister of Economy and Finance Eric Lombard stated on Sunday that ⁢the government is committed to reducing the public deficit to 4.6% of ⁢GDP by 2026, requiring “40 billion euros in additional efforts.”‍ He assured that this deficit ⁣reduction⁢ would not involve tax increases for middle-class ⁤citizens or businesses.

Business Leaders Voice Concerns

Patrick Martin,‍ president of the employers’ union Medef, cautioned against overburdening businesses with additional financial burdens.⁣ “It should not ‘Avect the companies even more, which⁤ this year supports 13 billion⁤ euros in additional ⁢samples’,” Martin said, adding, “Companies make efforts every day.”

Mayors Express Dissatisfaction

André ⁣Laignel, the first deputy vice-president of the Association of Mayors of France (AMF), criticized⁢ the meeting organized by François Bayrou as “a pure communication operation.” laignel stated‍ that local elected officials were given insufficient notice and preparation for the meeting, leading the AMF to decline⁣ participation.