2023-10-08 12:56:43
Published on Oct 8, 2023 at 12:56
The parliamentary examination of the finance bill for 2024 begins this week, and we already know that it will end with a 49.3. What meaning can the debates have in these conditions?
That everyone can defend their convictions is the essence of democracy. In this sense, this debate will necessarily be useful, and I hope that it will be as long and rich as possible even if it is likely that it will end with a 49.3. I remind you that last year 150 parliamentary amendments were included in the final version. We can enrich this text, I only hope that the record number of amendments tabled will make it possible to address all the subjects.
On what issues do you think it is possible to reach compromises with the oppositions?
I met all the leaders of the political oppositions before this examination. They know that 49.3 is probable, and therefore have an interest in entering into a discussion phase. On the public finance programming law, we have adopted half a dozen amendments from the opposition. On the fight against tax fraud, on the tax advantages linked to short-term furnished rentals, I hope that we can find compromises.
What proposals do you want to defend with the majority?
I want to first defend the budget as it is written. This text contains many strong choices that must be highlighted and explained. For example, we are putting an additional 7 billion euros on the table to give impetus to the ecological transition. The 3.9 billion euros that we are adding to the National Education budget, in particular to upgrade teachers, also deserve to be remembered. All this while making it possible to reduce the deficit to 4.4% of GDP. The work done is already colossal, it must be taught. This does not prevent adjustments from being made.
Of what order?
I want to make amendments that will improve our debt reduction trajectory. I hope we can emerge from the parliamentary review with a reduced deficit relative to the government’s target, even if the gain is only limited. This is imperative given the rise in interest rates. For this reason, I will make an amendment extending the contribution requested from electricians and refiners on exceptional profits. The energy crisis is not over, it is a way of protecting ourselves to ensure that efforts are also made by operators.
Are there other ways to save money?
I am going to come back to the question of the remaining cost for the Personal Training Account (CPF). The principle was decided last year but no concrete measures have yet come out. I will make an amendment aimed at making this remaining charge a reality. On apprenticeship, we must work on a form of funding capping: this involves modulating public effort when it concerns large companies or for BAC+5 training.
You want to secure the deficit level forecast for 2024 through additional revenue. Is this a way of recognizing that the growth trajectory is too optimistic?
No way. I am simply saying that we must do everything to reduce the debt because the increase in rates is a real risk for all French people. Our forecasts for 2024 are proactive but I am convinced that we will achieve them, as we did in 2023 despite a dark economic context.
Are there other priorities defended by the majority?
Here again we want to make adjustments to strengthen the government’s priorities. On the ecological transition, we want to exempt shade structures in parking lots from property tax in order to encourage the installation of photovoltaic panels, and strengthen the tax credit for the installation of electric charging stations at home. The tax and social exemption for soft mobility will also be extended. Beyond these questions, the majority will ask Bercy for a report on the conditions of application at European level of a minimum level of income tax for the most fortunate fellow citizens.
Faced with the housing crisis, should measures to support the sector be taken in the budget?
When we talk about the budget, we are talking about public money. Is it up to the taxpayer to blindly support this market? At the current level of real estate prices, I don’t think so. There needs to be a market adjustment, and therefore a drop in prices. That said, we are going to take several measures, such as extending the zero-rate loan and extending it to 6 million additional French people, and indexing APLs. Furthermore, I will defend an amendment enacting the reduction of the “Airbnb” tax advantage to bring accommodation back to long-term rental… We are not inactive. But be careful not to fuel real estate speculation.
Inflation remains high. Are you going to make a move for purchasing power?
We are doing a lot of things for purchasing power in this budget. We index all social minimums, the minimum wage, pensions, the income tax scale… We increase teachers. We allow the French to continue to pay for their electricity below its cost, thanks to the maintenance of the tariff shield. Of course, we can always do more. But there is also a responsibility for our public finances. It’s a balance.
Medef is worried that the majority is renouncing its supply-side policy. What do you answer?
Businesses are perfectly aware of the effort made by the government. We have created the conditions for companies to create value, invest and hire. This is a success and we are not going to change course. Moreover, we continue to lower production taxes. This is an important signal. Now, businesses can understand the need for the State to reduce its debt and for the effort to be shared. The French pay dearly for their energy, it is not illogical that energy companies are called upon to contribute. The State is reducing its spending, businesses must also participate.
How do you welcome the proposal from Horizon, your majority partner, to reduce income tax from 3 to 5 billion euros?
We are the majority of tax cuts. The French see this clearly. We have abolished the council tax and the TV license. This year again, we are indexing the income tax scale. And we will continue to reduce taxes, by at least 2 billion euros, as quickly as possible between now and the end of the five-year term. But in 2024, there is no room for maneuver to do so. I have no doubt that our allies at Horizons will rally around this reality.
The opinion of three rating agencies must come during the examination of the PLF. Is this additional pressure?
No. Rating is an ongoing process and the risks to the rating are already in the rates. My concern is not the rating agencies, but the debt burden. Do we want debt interest to be our country’s first budget in 2027? Everyone can understand that if we let the debt slip away, we reduce our ability to distribute wealth, develop our public services and finance our ecological transition. It’s as simple as that.
What do you plan to do to strengthen the fight against fraud?
There are already many articles in the finance bill to fight against tax and social fraud. It’s a 360° plan, very ambitious. I hope this will be a subject of consensus.
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