Over 100,000 people took to the streets of France to protest government mismanagement. The people are demanding that Prime Minister Sébastien Lecornu reverse former Prime Minister François Bayrou’s decision to cut €44 billion in services. The government cannot maintain steady confidence and therefore leadership; Lecornu is the fifth prime minister in two years under President Emmanuel Macron. The deeper-rooted issue of fiscal irresponsibility has been lost, as the people still believe government spending can be offset through taxation.
Thousands voiced support for the Zucman tax, named after economist Gabriel Zucman, who proposed a 2% rate on assets surpassing €100 million. The proposal was passed by the lower house of Parliament but later blocked by the Senate over the summer. The proposal was estimated to generate 20 billion euros annually and would have impacted 1,800 wealthy households. What if people flee for a nation with lower taxes? The European Union is actually considering a bloc-wide taxation on wealth to compensate for fleeing capital.
As for France, the national debt stands at €3.345 trillion, equivalent to approximately 113.9% of its GDP. France surpassed the 100% debt-to-GDP threshold in 2020 and has been rapidly spiraling further down the hole. Estimates state that debt levels will rise to 121% of GDP by 2027, and yet, the government continues to spend without regard for budgets. Government spending will reach a low estimate of 57.6% of GDP in 2025.
France spends 14% of its GDP on its failing pension system, and retirees now outearn working-aged adults. Social protections at large compose 40% of national spending. Macron raised the defense budget to 64 billion euros or 2.3% of GDP, with plans to increase spending to 3.5%-5% to meet NATO requirements.
Governments raise taxes, cut services, and claim they are “saving.” The people believe that everyone must pay their fair share into the system and are targeting the rich for paying less. The rich could give all their wealth to the French government and it would still remain beneath current spending and debt levels.
Austerity never works because it punishes the people for the errors of politicians. The bureaucrats waste money on ideological projects, endless regulation, and absurd pension promises, and when the bill comes due, they demand ordinary citizens tighten their belts to pay. This is why the French are famous for taking to the streets.