Jean-Noel Barrot, France's Minister for Europe and Foreign Affairs, in Paris, on August 25. AFP
Jean-Noel Barrot, France's Minister for Europe and Foreign Affairs, in Paris, on August 25. AFP
Jean-Noel Barrot, France's Minister for Europe and Foreign Affairs, in Paris, on August 25. AFP
Jean-Noel Barrot, France's Minister for Europe and Foreign Affairs, in Paris, on August 25. AFP

France sets Palestinian statehood recognition date as political turmoil builds in Paris


Sunniva Rose
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France will recognise the state of Palestinian on September 22 despite political turmoil in Paris that may bring down the government in two weeks, Foreign Minister Jean-Noel Barrot has said.

Israel and the US have criticised France's diplomatic initiative, which has inspired the UK, Australia, New Zealand, Canada and Malta to similar decisions.

“The Israeli government has not had strong enough words against what France is doing,” Mr Barrot said in an interview with radio RTL on Tuesday, as he defended the decision as a step towards regional stability.

We managed to achieve thanks to this international dynamic that we created
Jean-Noel Barrot

France may face another political crisis after the country's three main opposition parties said they would not support a vote of confidence scheduled for September 8.

The vote, called by Prime Minister Francois Bayrou, aims to win political support for sweeping budget cuts. “It is impossible to dismiss this issue without betraying our country,” Mr Bayrou said on Monday.

Asked by RTL if he had already “started packing his bags”, Mr Barrot, a centrist like Mr Bayrou, brushed off the idea. Describing opposition groups as “irresponsible”, Mr Barrot said: “The question is simple: Do we refuse to allow the country to sink into over-indebtedness, yes or no?”

Foreign policy

France entered a period of political instability last year after Mr Macron called snap elections that yielded no clear majority in the National Assembly. Many analysts believe that Mr Bayrou will suffer the same fate as his short-lived predecessor, Michel Barnier, who lasted 91 days in office before he was removed by a no-confidence vote over budget talks.

France has so far refrained from supporting direct sanctions against Israel over the Gaza war, but is now reconsidering its stance amid reports of famine. Bloomberg
France has so far refrained from supporting direct sanctions against Israel over the Gaza war, but is now reconsidering its stance amid reports of famine. Bloomberg

Yet under the French political system, foreign policy is traditionally led by the President, not the Prime Minister. Mr Macron is widely expected to press ahead with his plans to recognise a Palestinian state, after having invested significant political capital in it.

Asked whether the French political crisis had changed the government's plans, Mr Barrot reacted with surprise. “But why? You must realise what we managed to achieve thanks to this international dynamic that we created,” he said.

Mr Barrot said France had countries such as Qatar and Turkey call for Hamas to disarm and declare their intention “to have normal relations with Israel”. He was likely referring to a statement endorsed in New York in July by a number of countries, including Qatar and Turkey, at a ministerial conference on Palestinian statehood.

Israel has attempted to portray French plans as anti-Semitic – a sensitive allegation in France, where attacks against Jewish citizens have increased since the October 7, 2023, Hamas-led incursions against Israel.

Tensions have been further inflamed over the defacing of a memorial to Ilan Halimi, a young Jewish man who was kidnapped and tortured to death for his religious beliefs in 2006. On August 14, an olive tree planted in 2011 in a Paris suburb to commemorate his death appeared to have been cut by a chainsaw.

Anti-Semitism row

Speaking to RTL, his sister Anne-Laure Abitbol said that she was relieved that his tomb had been moved to Israel a year after his death. “Today we fear for the people who have died, like Ilan and others, but we fear even more today for our living,” she said on Tuesday.

Tensions over anti-Semitism were recently amplified by US ambassador to France, Charles Kushner, who accused Mr Macron of failing to do enough to combat it.

A memorial stele on the outskirts of Paris on August 15, 2025. AFP
A memorial stele on the outskirts of Paris on August 15, 2025. AFP

In a letter, Mr Kushner urged Mr Macron “to act decisively: enforce hate-crime laws without exception, ensure the safety of Jewish schools, synagogues and businesses … and abandon steps that give legitimacy to Hamas and its allies.”

Mr Kushner, the father of Jared Kushner, son-in-law of US President Donald Trump, was summoned on Monday by the Foreign Ministry for an explanation. He sent his deputy instead, according to Mr Barrot, who said he would be meeting Mr Kushner in the coming days.

“These are unjustifiable and unjustified remarks,” Mr Barrot said, referring to the ambassador's letter.

Despite the criticism, Mr Macron has consistently condemned anti-Semitism and expressed support for France's Jewish community. He was the only non-Israeli leader to organise a national ceremony for victims of the October 7 attacks.

Shortly after his election in 2017, Mr Macron also became the first French President to invite an Israeli representative – Prime Minister Benjamin Netanyahu – to commemorate the victims of a mass round-up of French Jews in 1942 on the orders of Nazi Germany and its collaborators.

Charles Kushner, US Ambassador to France. AFP
Charles Kushner, US Ambassador to France. AFP

At the time, Mr Macron was criticised by a number of politicians and Jewish leaders for appearing to signal that Mr Netanyahu – an by extension, Israel – represented French Jews. Today, Mr Netanyahu has become one of Mr Macron's sharpest critics.

While France has so far refrained from supporting direct sanctions against Israel over the Gaza war, Mr Barrot indicated that Paris is reconsidering its stance amid reports of famine and killing of journalists by Israel.

“This week, when I meet my fellow [EU] foreign ministers, I will once again propose that measures be taken against Israeli interests until the demands we have made are met,” Mr Barrot said, referring to an informal meeting in Copenhagen on Friday.

The Foreign Minister did not specify what measures he was referring to, but French diplomatic officials have previous told The National that France supported a proposal by the European Commission to partially suspend Israel from a flagship technology research programme, named Horizon Europe.

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1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

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Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

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There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

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Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

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Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

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Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

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Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

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