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| Macron outlines plan for 'significant' tax cut after months of unrest | Macron outlines plan for 'significant' tax cut after months of unrest |
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| Emmanuel Macron has promised tax cuts, pension rises and a continuation of his reform programme while responding to five months of demonstrations by gilets jaunes (yellow vests) anti-government demonstrators. | Emmanuel Macron has promised tax cuts, pension rises and a continuation of his reform programme while responding to five months of demonstrations by gilets jaunes (yellow vests) anti-government demonstrators. |
| In his first press conference in two years as France’s president, the pro-business centrist said he recognised the protesters’ “just demands” and the “anger and impatience for change” but public order must now be restored. | |
| “The transformations that are in progress and the transformations that are essential for our country should not be stopped,” he said from the Elysée palace. | |
| After five months of protests during which there was sporadic rioting and arson in Paris, Macron has been under pressure to kickstart a programme for structural change that would define the second part of his presidency. | |
| Macron said he wanted a “significant” cut in income tax, which would be financed by closing loopholes and squeezing government spending, but the French would also have to work more. The government also plans to link the lowest pensions back to inflation. | Macron said he wanted a “significant” cut in income tax, which would be financed by closing loopholes and squeezing government spending, but the French would also have to work more. The government also plans to link the lowest pensions back to inflation. |
| Among others measures, Macron said he planned to make it easier for citizens to propose national referendums. | Among others measures, Macron said he planned to make it easier for citizens to propose national referendums. |
| He said he also wanted to reduce the number of MPs and to change voting for the national legislature so it better reflects the diversity of France’s political parties. The parliamentary election system is currently designed to give the winning party a strong majority. | He said he also wanted to reduce the number of MPs and to change voting for the national legislature so it better reflects the diversity of France’s political parties. The parliamentary election system is currently designed to give the winning party a strong majority. |
| The president had been caught off guard when protesters began occupying roundabouts in a fuel-tax protest in November, which later turned into a widespread movement denouncing tax inequality with regular clashes with police in major cities each Saturday. | |
| Macron, who was was accused by protesters of tilting his reforms in favour of the rich and big business, has seen his popularity ratings drop from the 60% approval rating just after he beat the far-right Marine Le Pen and was elected president in 2017 to around 30%. | |
| The latest measures were announced after Macron launched a three-month voter-listening exercise, dubbed the Great Debate, in which grievances were aired during thousands of town-hall style meetings. At occasional, carefully organised appearances at debates, Macron himself had spoken for up to six hours. | The latest measures were announced after Macron launched a three-month voter-listening exercise, dubbed the Great Debate, in which grievances were aired during thousands of town-hall style meetings. At occasional, carefully organised appearances at debates, Macron himself had spoken for up to six hours. |
| “I intend to transform anger into solutions,” had declared in an open letter to the country before the debate process began in January. | “I intend to transform anger into solutions,” had declared in an open letter to the country before the debate process began in January. |
| Admitting to failures in December, Macron had addressed the gilets jaunes by unveiling a €10bn package of tax cuts and income top-ups for the working poor and pensioners, and he had travelled into the rural heartland to try to reconnect with voters. But most protesters had boycotted the town-hall debates. | Admitting to failures in December, Macron had addressed the gilets jaunes by unveiling a €10bn package of tax cuts and income top-ups for the working poor and pensioners, and he had travelled into the rural heartland to try to reconnect with voters. But most protesters had boycotted the town-hall debates. |
| While polling has confirmed that French people want to pay less tax, it also showed strong demand for increasing small pensions and providing better health services in rural areas. The government – which will meet on Monday to discuss how to put Macron’s new measures into place – has already stressed there is a delicate line to walk on public spending. | While polling has confirmed that French people want to pay less tax, it also showed strong demand for increasing small pensions and providing better health services in rural areas. The government – which will meet on Monday to discuss how to put Macron’s new measures into place – has already stressed there is a delicate line to walk on public spending. |
| The centre-right prime minister Édouard Philippe, a fiscal hawk, has argued for tax-cuts and public spending cuts. Those on the left of Macron’s party have argued for more social measures. | The centre-right prime minister Édouard Philippe, a fiscal hawk, has argued for tax-cuts and public spending cuts. Those on the left of Macron’s party have argued for more social measures. |
| Macron had been scheduled to give a pre-recorded TV speech last week, announcing his plans to address the social unrest. But just two hours beforehand, Notre Dame cathedral went up in flames and Macron cancelled his speech as he rushed out to scene of the fire. In the speech, Macron had vowed to lower taxes on average-income families – a measure he says would be funded by cracking down on tax evasion. | Macron had been scheduled to give a pre-recorded TV speech last week, announcing his plans to address the social unrest. But just two hours beforehand, Notre Dame cathedral went up in flames and Macron cancelled his speech as he rushed out to scene of the fire. In the speech, Macron had vowed to lower taxes on average-income families – a measure he says would be funded by cracking down on tax evasion. |
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