By Investing.com – France is facing a budget crisis. To address this, lawmakers are considering a proposal to make French workers work an extra seven hours without pay.
This would generate additional revenue for the government. While the idea has been approved by the Senate, it could still be rejected in the final budget bill.
The government is also looking to cut spending and increase taxes to balance the budget. However, these measures, particularly the reduction of a tax incentive for low-income workers, have raised concerns among businesses, who fear increased labour costs. Some argue that it would be better to eliminate a public holiday instead.
France’s economic challenges stem from spiralling spending and lower-than-expected tax revenues this year. Despite efforts to shield low-income earners, the idea of unpaid work hours has drawn backlash, particularly as France’s workweek is already longer than in many European countries
Though the government has targeted the bulk of its tax hikes on the wealthy and big companies, its budget bill includes plans to rein in a tax incentive on employers’ social security contributions for low-income workers.
The French workweek is already longer than many other European countries, and this proposal further highlights the economic challenges faced by the nation.