PARIS, Oct 6 (Reuters) – French presidential frontrunner Marine Le Pen, of the far-right National Rally, on Tuesday presented her main budget proposals ahead of next year’s election.
Below is a list of her main economic priorities.
PUBLIC FINANCES
Constitutional “golden rule” to be approved by referendum, limiting future deficits to levels consistent with a progressive reduction in France’s debt burden.
Restoring a primary budget balance within 18 months of taking office.
Public deficit below 3% of GDP by 2030 and below 2.5% by 2032, the last year of the next presidential term.
Public debt reduced to 112% of GDP by 2032 from around 121% in 2027.
Spending-cut programme of €140 billion ($157 billion) by 2032, net of at least €30 billion of tax cuts.
Public spending reduced to below 50% of GDP by the end of the presidential term.
ECB
Le Pen said there should be discussions with the European Central Bank to intervene to ease borrowing costs once France had restored control of its public finances.
Proposed ECB support for financing energy-transition investments and decarbonisation projects.
She also called for a global initiative to address rising sovereign and private debt, including stronger international cooperation against tax avoidance and tax fraud.
IMMIGRATION
Tighter migration controls and introduction of a “national preference” policy that she said would save €15 billion in the first year and €29 billion in a full year.
EUROPEAN UNION
Reduction of France’s net annual contribution to €5 billion.
Proposal to fund part of the EU budget through harmonised EU-wide tobacco and alcohol taxes, which Le Pen said would also help combat cross-border fraud and smuggling.
PENSIONS
Pension overhaul aimed at generating €15 billion to €20 billion in long-term savings, with details of the reform to be presented in the coming weeks.
Plans for a new funded private pension scheme based on individual and collective retirement savings, with details to be unveiled in the coming weeks.
CORPORATE TAXATION AND BUSINESS
Multinationals deemed to underpay French tax would be taxed on revenue generated in France using their average profit margin to estimate taxable profit.
Reduction of companies’ production taxes by €20 billion.
Strengthening of the Dutreil tax regime, which provides inheritance-tax relief for family-owned businesses.
Corporate-tax reform for small and medium-sized businesses to be unveiled later.
Introduction of a 150% tax super-deduction for automation, digitalisation and productivity-enhancing investments by small businesses and farmers.
WEALTH AND CAPITAL TAXATION
Le Pen said she would replace a tax on large real estate holdings with a financial wealth tax and set the rate at 30% to restore investor confidence.
Business owners’ holdings in their companies would be excluded from the new financial wealth tax.
ENERGY
Cuts to energy taxes, including major value added tax reductions on energy and essential goods.
An end to what Le Pen described as loss-making subsidies for wind and solar power.
Pledge to regain national control over electricity production and cut power bills.
Proposal under consideration to extend zero-interest loans to cleaner vehicles.
RESEARCH AND INDUSTRY
Increase in public research spending equivalent to 0.3 percentage points of GDP by 2032.
Objective of raising total French research-and-development spending above 3% of GDP.
FRAUD AND COMPETITION
Introduction of VAT collection at source, a measure Le Pen said would help tackle an estimated €26 billion of VAT fraud.
Significant reinforcement of customs and consumer-protection enforcement services.
Reform of public procurement rules aimed at reducing cartels and overpricing.
Minimum fines for economic offences set above the financial damage caused.
CLIMATE
Target of achieving carbon neutrality before 2050 and publishing a new national low-carbon strategy.
Proposal for higher-carbon EU economies to contribute more to the bloc’s budget through a new carbon-based contribution formula.
STATE REFORM
Elimination of “almost all” state agencies and related public bodies.
Major simplification of local government structures and France’s overlapping administrative layers.
Abolition of more than 120 taxes.
Reduction in public-sector headcount through non-replacement of some retiring workers.
($1 = 0.8891 euros)
(Reporting by Gabriel Stargardter; Editing by Leigh Thomas and Xevi Fontdegloria)
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