By Mathieu Rosemain

PARIS (Reuters)

Prime Minister Michel Barnier on Sunday opened the door to raising taxes on France’s wealthiest individuals and some big corporations to help close a gaping hole in the public finances, but said he would protect the lower and middle classes.

President Emmanuel Macron’s office this weekend unveiled a right-leaning strategy which he hopes will break the political deadlock that followed a summer snap election. Its most immediate and daunting task will be to put together a budget for 2025 at a time France is struggling to contain a spiraling budget deficit.

“I’m not going to further increase taxes on all French people, neither on the most modest, nor on people who work, nor on the middle classes. But I cannot exclude the wealthiest from the national effort to rectify the situation,” Barnier told France 2 television.

France’s total debt stands at 110% of GDP, or close to 3.2 million euros. Weaker-than-expected tax revenues and higher spending by local governments have left its public sector budget deficit spiraling towards 6.2% of economic output next year if nothing is done to rein it in.

It is in breach of European Union deficit rules, and credit rating agencies are scrutinizing French decision-making carefully.

“A large part of our debt has been placed on international and foreign markets. We have to maintain France’s credibility,” Barnier said.

Barnier, who was the EU’s lead negotiator during Britain’s Brexit negotiations, also stated he was open to changes to Macron’s pension reform but mentioned that any changes should not undermine the pension system’s precarious finances.

He expressed a desire to better consider the hardships faced by working mothers over their careers and stated he was open to input from employers and unions.

Macron’s political opponents on the left and far right have already threatened votes of no confidence against Barnier’s government. They argue the government does not reflect the French people’s choice in the July poll.

“This is more Macron. It’s a government that has no future,” said Jordan Bardella, chairman of Marine Le Pen’s National Rally party.

Barnier’s government lacks a majority and will need to keep the far-right on side to prevent them from voting to bring the government down. Perhaps with that in mind, Barnier said he would adopt a tougher stance on immigration.

“We need a European response. We need to take action at home too,” Barnier added. “We need to deal with the immigration issue much more rigorously.”