Ankara:France's Council of Economic Analysis has called for a £125 billion ($140 billion) reduction in the public deficit by 2032, along with significant policy reforms.

According to Anadolu Agency, the council, which advises the prime minister, issued its first collective note since 2014, signed by all 23 members. They warned that the policies of the past 30 years have become unsustainable due to factors such as an aging population, deteriorating public finances, weak productivity growth, and declining educational performance, coupled with rising poverty and wealth inequality.

The economists cautioned that higher interest rates could lead to an uncontrolled increase in public debt, necessitating urgent financial repairs on terms that might be beyond France's control.

To restore market confidence and stabilize debt within five years, the council suggested achieving about half of the proposed deficit reduction in the first two years. Their report detailed 150 potential measures, including freezes on government spending, pension indexation changes, higher taxes, and cutting business subsidies. They also suggested restoring housing or wealth taxes, increasing value-added and corporate taxes, and scaling back research tax credits to prevent windfall benefits for large companies.

The proposed adjustments should not disproportionately affect a small section of the population or rely on uncertain future growth. In addition to fiscal consolidation, the council recommended £4 billion in annual investment in education, greater use of digital technologies and artificial intelligence, and the launch of a 'France 2040' innovation program. They also pressed for stronger climate adaptation measures and increased taxation on large inheritances to combat wealth inequality.

This appeal arrives seven months ahead of France's 2027 presidential election.