Lucie Castets, a civil servant and potential candidate for France’s new Prime Minister, has criticized the current government’s fiscal decisions and proposed significant changes to the tax system to fund public services. Castets, backed by the NFP alliance, aims to introduce 14 tax bands to make income tax more progressive, potentially reducing tax bills for many households. She also plans to reintroduce the ISF wealth tax and increase taxes on the super-rich to ensure fair taxation. Castets hopes to generate up to €150 billion in tax and social security revenues by 2027 to fund various social programs and repeal Macron’s pension reform.
However, these spending plans could make the EU nervous, as France has previously breached EU budget rules. Castets emphasized that compliance with EU fiscal rules is not the NFP’s primary objective, and they plan to propose new discussions on the matter. Castets’ appointment as Prime Minister will depend on President Macron’s decision, with ongoing political uncertainties following the recent legislative elections. Castets is open to compromise with other political groups, except the far-right National Rally party, in order to implement the NFP’s program.
The proposed tax changes and social spending plans by Castets represent a significant departure from current policies and could have far-reaching implications for France’s economy and social welfare system. Castets’ vision for a more progressive tax system and increased funding for public services is likely to spark debate and opposition from various stakeholders, but it also reflects a renewed focus on social welfare and equality in French politics.
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