The tax increases will affect “300 companies” that generate more than “one billion” in turnover, Barnier specifies

2024-10-04 01:43:20

The tax increases mentioned for several weeks by Michel Barnier are becoming increasingly clear. Around “300 companies” will be hit by the tax increase, for “a year or two”, Michel Barnier said on France 2 on Thursday, refuting any “fiscal shock” as some, including his partners Macronie, accuse.

“We will ask for an effort from the largest companies that earn more than 1 billion (euros of turnover) and a temporary exceptional effort (…). This represents 300 companies,” explained the Prime Minister. The “duration” of this additional contribution “will be established by law”, and “will be one year and perhaps two years”, he specified.

During his general policy speech, the head of government had already confirmed that large companies, i.e. those that “make significant profits”, but also the “luckiest French” will be given greater value in the 2025 budget to restore the country’s finances .

2 billion euros in savings

France currently has a debt of 3,228 billion euros. And its deficit, which was expected to reach 5% this year, will exceed 6% without corrective measures.

According to Michel Barnier, these tax increases will “recover 2 billion euros”. “The effort we will ask” from the “luckiest” will allow us to “recover 2 billion euros”, estimated Prime Minister Michel Barnier on France 2 on Thursday.

“The effort we will ask for is based on a tax system for very high incomes put in place by François Fillon and Nicolas Sarkozy a few years ago. We will add something to this system for the exceptional and temporary participation of the luckiest people,” added the head of government.

Another cost-saving measure: Michel Barnier’s government intends to “merge public services” and “probably not replace all public employees” to reduce public spending, the prime minister explained to France 2 on Thursday evening. We will merge services public. We will probably not replace all public employees who are not in direct contact with citizens, all public employees who retire”, explained Michel Barnier.

“Single social allowance”

Prime Minister Michel Barnier also announced his intention to launch a “single social allowance” project “for next year”. The objective of this measure will be “that at the end of this work, it is more convenient to work than not to work”, he declared, specifying that this “project will take some time”.

Michel Barnier believes that “work must yield more than the sum of the benefits”. But also that it was necessary to “de-bureaucratize” the allowances and “perhaps sometimes increase some”, such as that intended for “people with disabilities”. The Prime Minister added that he had “not found concrete proposals regarding” the single allocation.

This project is one of those presented on Wednesday by Laurent Wauquiez, president of the deputies of the Republican Right (former LR). With his troops, he recommends a “single social allowance limited” to “70% of the minimum wage”, intended according to him to fight against “welfare”.

“Pause on standards”

Prime Minister Michel Barnier also promised to “take a break from standards” to “encourage” farmers affected by the crisis. “These farmers affected by health crises and poor harvests deserve to be encouraged. They’re fed up. Fed up with constraints, rules and controls. So let’s take a break from the standards,” he told France 2.

“They work a lot, in a vital way, to sustain life, to feed the French with healthy, balanced, diversified and traceable food,” underlined Michel Barnier, Minister of Agriculture from 2007 to 2009 under the presidency of Nicolas Sarkozy.

The Prime Minister will have to go on Friday to the Cournon-d’Auvergne (Puy-de-Dôme) livestock summit, a professional whose herds are affected by various diseases, for his second trip to the province after the fire brigade congress of Mâcon on Saturday.

He also announced that his government would “without delay” resume the Agricultural Sovereignty Guidance Bill, which had been amended after industry demonstrations in early 2024. But its consideration had been interrupted by the dissolution. This bill places agriculture among the main general interests, establishes a one-stop shop for the establishment of new farmers and facilitates the construction of livestock buildings or water reservoirs.

“I set the line”

Finally, on immigration, Michel Barnier wanted to reaffirm his position. “I am the one who sets the limit” on immigration, and “there will be rigorous measures to control it,” he assured, after controversial statements by Interior Minister Bruno Retailleau, in particular on the rule of law.

The prime minister seems to exclude the idea of ​​a new law on immigration, as requested by the leader of the deputies of the National Group Marine Le Pen. “I won’t announce the laws in advance,” he said, but “maybe there will be changes to the (current) law if necessary.” “I won’t get into big ideological debates.”