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To quell unrest, France's Macron speeds up tax cuts but vows no U-turn

Updated: 2018-12-11 06:00
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"I TAKE MY RESPONSIBILITY"

Asked whether the budget deficit would be kept below the EU limit of 3 percent, an Elysee official said France had some wiggle room on spending if a one-off tax rebate, which inflates its deficit by 20 billion euros in 2019, was not taken into account.

Olivier Dussopt, junior minister for public accounts, said on BFM TV the measures would cost 8-10 billion euros ($9.1-$11.4 billion).

Macron faced a delicate task: he needed to persuade the middle class and blue-collar workers that he heard their anger over a squeeze on household spending, without being exposed to charges of caving in to street politics.

The 40-year old former investment banker was also under pressure to make amends about cutting remarks he has made about the costs of welfare that critics say made him look aloof and arrogant.

"No doubt over the past year and a half we have not provided answers that were strong and quick enough. I take my share of responsibility," he said.

"I may have given the impression that I did not care about that, that I had other priorities. I also know that I have hurt some of you with my words."

Political opponents, who have largely failed so far to tap into the discontent from the leaderless "yellow vest", criticised Macron's response as insufficient.

"Emmanuel Macron thought he could hand out some cash to calm the citizen's insurrection that has erupted," said Jean-Luc Melenchon, leader of the far-left La France Insoumise.

"I believe that Act V (of the protests) will play out on Saturday," he said, referring to a new round of protests planned this weekend.

One of the faces of the "yellow vest" movement appeared unconvinced as well.

"In terms of substance, these are half measures. We can feel that Macron has got a lot more to give," Benjamin Cauchy, who met the French leader last week, told France 2 television.

Reuters

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