French budget crisis: What are the counter-proposals? • FRANCE 24 English

French budget crisis: What are the counter-proposals? • FRANCE 24 English

It’s time now for business on the program. Even after Franu’s governments was thrown out, angry citizens across France went ahead with their block everything protests to oppose spending cuts. Ukora from our business desk joins me now for more. Hi Yuka. Hi Inca. So unions called on people to maintain pressure on the street to bury what they viewed as austerity plans once and for all. The government wanted to cut 44 billion euros in public spending next year to narrow its budget shortfall from 5.8% of GDP in 2024 to 4.6% in 2026. Opposition blocks have made counter proposals calling for increased tax revenues while maintaining generous social spending. Luke takes a closer look. With France sending a message to the nation’s new prime minister on Wednesday, opposition parties are sure to take it on board. What I want is to build step by step to provide solutions to the French people to show them that their lives can change. The center-left Socialist Party’s plans to reduce the deficit on a 7-year timeline focus on increased revenue of nearly 27 billion and combining 14 billion in spending cuts with over 19 billion in stimulus spending. Attacks on stock dividends, less state aid for large companies, and a crackdown on corporate tax shelters are all on the menu. But for the far-left, it’s not enough. When I see in the socialist counterbudget that they no longer have reinstating the solidarity wealth tax or increasing the minimum wage and that they propose keeping retirement at 63, I believe that we are indeed not in agreement. All left-wing parties favor a 2% tax on wealth over €100 million. But over on the far right, the National Rally wants a 3.3 billion euro reduction to France’s EU contributions and 4 billion in spending cuts for immigrants healthcare. They aim to save 13.7 billion while reducing the VAT on energy and basic necessities, something they’d pay for by rebalancing the tax burden to focus on profits, speculation, and fraud. If the new prime minister pursues the policies of Emanuel Mron, then he will fall in the same way as Michel Barney and France Beu because they refuse to break with the policies that have been in place for seven years. France’s protesters certainly know what they don’t want. The government’s job is now to find something that they do or will at least be willing to swallow. Well, we’re moving on now, Yuka, because Donald Trump wants the EU to hit China and India with tariffs as high as 100% to put pressure on Russia. Well, China and India remain major buyers of Russian energy, oil, and gas. The Trump administration has already imposed 50% tariffs on Indian goods, including a 25% levy as punishment for its continued economic ties with Moscow. An EU delegation is currently in Washington to discuss how to coordinate sanctions efforts against Russia. And Mr. Trump reportedly told them that he was ready to raise the levies even higher on India and China if Europe hit the two countries with 100% tariffs. This comes as the EU actually aims to finalize a free trade deal with India by the end of the year. Now, if Brussels embraces the idea, it would mark a shift in its strategy. Uh it has favored sanctions rather than use tariffs as an indirect tool. Commission President Ursa Vandal Lion said the the block would accelerate a complete exit from Russian energy. Let’s take a listen. We need more pressure on Russia to come to the negotiation table. We need more sanctions. We are now working on the 19th package in coordination with partners. We’re particularly looking at phasing out Russian fossil fuels faster. We’re looking at the shadow fleet and at third countries. Next, Danish farmer giant Novod Nordisk is cutting 9,000 jobs. The biggest layoff in Denmark’s history. Well, the maker of hugely successful weight loss drugs, Viggovi and Ompic has announced a restructuring plan which includes letting go of 11% of its workforce. It comes weeks after Nova Nordisk issued a profit warning that resulted in $70 billion wiped off its market value in a single day. The company’s shares have fallen nearly 46% since the start of this year, bringing its market cap to about $181 billion from its peak of $650 billion. Since Wiggoi became the first effective obesity drug approved in the United States in 2021, the drug maker has faced increased competition from rivals. In May, its longtime CEO stepped down after losing its market lead uh market lead to Eli Liy. Its new CEO pledged to reinvent its planned cost savings into boosting innovation and sales. I know these are difficult decisions. The changes will deliver savings of about 8 billion DKK or equivalent to$ 1.3 billion US per year and every corona will be reinvested into growth advancing R&D expanding manufacturing and improving commercial execution and patient access worldwide. Now shares in Nova Nordics soared 3.7% today in Denmark after initially taking a nose dive. European markets on the whole were mixed this Wednesday with London Switzy 100 and Frankfurt stats falling mildly and Paris’s cat extending gains as the country’s prime minister officially changed. On Wall Street, the Dow Jones has reversed calls after hitting a fresh record high on Tuesday. The biggest winner today though is Oracle. The US information tech firm catapulted 40% after reporting robust quarterly results and strong growth forecast with its backlog surging to nearly half a trillion dollars. Oracle’s co-founder Larry Ellison has overtaken Elon Musk as the world’s richest person and you’re ending in Cuba because it’s been hit by another nationwide blackout. It’s actually the fifth total blackout in less than a year to hit the Caribbean island affecting 10 million people. It’s not clear what caused the electricity grid to collapse nationwide, but partial outages occur on a near daily basis. 80% of Cuba’s electricity is generated by outdated oil fired plants, and the nation depends almost entirely on crude imports from Venezuela, Russia, and Mexico. The country is in grips in is in in the grips of its worst economic and energy crisis in decades exacerbated by US sanctions, falling sugar production and a drop in tourism. And that’s it from the business desk. Yuka, great stuff. Thank you so much for joining me and giving us the latest in the world of

Protests gripped France nationwide on Wednesday as the newly appointed prime minister, Sébastien Lecornu, assumed office. Protesters demonstrated their anger at potentially massive spending cuts, as opposition lawmakers defended their counter-proposals to tackle France’s debt and deficit. So what’s in their plans? Plus, Danish pharma giant Novo Nordisk announces a plan to cut 9,000 jobs as the maker of Wegovy and Ozempic struggles to turn its fortunes around. 
#France #Budget #debtanddeficit

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