Macron's efforts to appease Yellow Vest protesters could fuel another rift in Europe
2019-05-01 08:37:40 source：CNBC
April 30, 2019
President Emmanuel Macron’s promise of new tax cuts in France could create further tension between Italy’s anti-establishment government and the European Union, analysts told CNBC.
In an attempt to stop months of ongoing protests at home, Macron announced Thursday income tax cuts totaling 5 billion euros ($5.6 billion). He also said that worker bonuses of up to 1,000 euros wouldn’t be taxed; single parents would get extra support; and no schools or hospitals would be closed until 2022.
These new measures are expected to increase the country’s fiscal deficit further and breach the European Union’s rules once again. Analysts at Berenberg Bank estimate that France’s fiscal deficit will reach 3.2% this year, even excluding these latest measures. European rules state that member nations should not surpass a deficit threshold of 3%.
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