France's Government Faces Crisis Amid Tax Hike Dispute

A fierce debate over potential tax increases has erupted in France even before the new government is appointed. Interior Minister Gérald Darmanin declared it 'impossible' for the current administration to support a government that raises taxes. He emphasized that participation in any government requires clarity on its intentions. Darmanin also announced his decision to not continue in the government, instead focusing on his role as a National Assembly member. This decision came amid speculation about his interest in the vacant Foreign Minister position, soon to be left by Stéphane Séjourné, who is moving to Brussels as an EU Commissioner.

Prime Minister Michel Barnier has been holding discussions with various political factions to form a new government and outline its agenda. Despite the urgency, few details have been made public. Barnier, who has set a self-imposed deadline to finalize the government by the week's end, acknowledged the country’s grave fiscal situation, hinting at possible tax measures without confirming them. He stressed the need for responsibility over sharp remarks, seemingly directed at Darmanin.

The Republican Right has supported Barnier’s cautious approach, advocating for a discussion on fairer taxation. Meanwhile, Marine Le Pen of the National Rally reiterated her call for a comprehensive audit of state finances. Amid this backdrop, leftist committee chairman Eric Coquerel struggled to obtain necessary budget documents, highlighting the administrative challenges.

France is in the throes of a significant governmental crisis following an uncertain parliamentary election outcome in July. The current government has been functioning in a caretaker capacity for over two months. The budget draft, initially scheduled for October 1, might be delayed, adding to the legislative backlog. The government must finalize the budget by December 31, 2024, to ensure financial stability.