French government to cut taxes for households and business

PARIS – The French government has pledged to cut taxes for households next year to the tune of 9 billion euros ($9.8 billion), a spending boost that has its roots in the yellow vest movement that broke out last winter.

Finance Minister Bruno Le Maire presented the 2020 budget to Cabinet on Friday and said the government is also seeking to boost investment by cutting taxes for business by 1 billion euros.

The government expects the budget deficit to fall from 3.1% in 2019 to 2.2% next year. That would be France’s lowest since 2001.

The 2020 budget is based on a growth forecast of 1.3%.

The package comes in response to the yellow vest protests against social injustice and the high cost of living. The movement petered out this summer.