The French President Emmanuel Macron signed three laws laying the basics for introducing his controversial tax reform and other parts of his election platform. The new laws will contribute to the restructuring of the French economy, said the head of state at the signing ceremony at the Elysée Palace. The legislative acts that local Parliament adopted days ago aim to boost investment and stimulate the national economy. Critics of the new left-wing regulations, however, attacked them as “a gift to the rich”.
The Budget Law of 2018 contains many emblematic and controversial measures, including the conversion of wealth tax into a tax only on the real estate owned. Corporate tax will be reduced in the coming years, and capital gains will be taxed at a flat rate rather than with tax rates that increase according to the level of capital gains.
With the budget for 2018, France is expected to continue to comply with EU budget deficit requirements, as it did in the current year.
Macron introduces reforms at a rapid pace since coming to power in May.
The president also signed a law that will put an end to fossil fuel production in the long run, helping France to meet the goals set by the Paris Climate Change Agreement. Under the new rules, new permits for exploration for oil, gas and coal fields in France and its overseas territories will not be issued, and those already issued will only be renewed until 2040.