France to Cut Spending, Raise Taxes on Companies for Macron Plan

(Bloomberg) -- The French government will present spending cuts and tax increases on companies on December 19 to help finance President Emmanuel Macron’s “huge” stimulus for households, Prime Minister Edouard Philippe said on Thursday.

Macron on Monday announced a plan to appease protesters with a rise in the effective minimum wage, a tax cut for pensioners and the abolition of levies on overtime work.

In a speech to lawmakers, Philippe said the government’s fiscal discipline over the last 18 months had given France credibility with investors and the latitude to deliver on Macron’s plans. Spending cuts and new revenue from companies would also contribute, Philippe said, without giving further details. “Several solutions are possible,” he said.

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