France says coming tax hikes on the wealthy to be 'temporary'

A day after Prime Minister Michel Barnier pledged to tackle France's "colossal" debt through spending cuts and new taxes, Antoine Armand told the RTL broadcaster that low- and middle-earners would be spared from the extra fiscal burden.

France is looking to improve its financial situation by some 40 billion euros ($44 billion) next year in the hope of bringing the public sector deficit to five percent of gross domestic product (GDP) from an estimated more than six percent this year.

Two thirds of that sum are to come from spending cuts, and the rest from new taxes.

"Once we have managed to cut spending significantly, an exceptional and temporary effort will be required from those with extremely high incomes," Armand said.

Income tax brackets for "those who go to work every day" would not change, he promised.

"Large and very large companies" will also be asked to pay higher taxes, Armand said, but ruled out such an extra burden "lasting for several years".

During his first major policy speech to parliament Tuesday, Barnier said the government was now aiming to reach the European Union's deficit limit of three percent of GDP in 2029, two years later than previously planned.

He called France's debts of over 3.2 trillion euros -- more than 110 percent of GDP -- "the true sword of Damocles... hanging over the head of France and of every French person".

The government is to submit its 2025 budget plan to parliament next week.