2023-08-24 16:27:21
The Minister of Economy, Finance and Industrial and Digital Sovereignty, Bruno Le Maire, leaving the Council of Ministers, at the Elysée Palace, August 23, 2023. JULIEN MUGUET FOR “THE WORLD”
The business value added contribution (CVAE) will be “permanently deleted” by the end of 2027, and “The reduction in this tax will continue from 2024”, announced the Minister of the Economy, Bruno Le Maire, during his back-to-school speech in Alex (Haute-Savoie). The CVAE has already been halved this year and was to be completely abolished in 2024, but the government has chosen to spread its abolition, to reduce its cost to one billion euros per year for public finances.
“We will not deviate an inch from the only economic policy that has given the best results that France has known for forty years: the policy of supply”promised Bruno Le Maire in a furniture factory of the Fournier Group, which notably manufactures Mobalpa kitchens, in front of Savoyard employees and industrialists.
Employers have been sounding the alarm in recent days against a questioning of the trajectory of tax measures favorable to businesses, pointing in particular to the spreading over four years of the abolition of the CVAE, which Bruno Le Maire has therefore confirmed.
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More generally, “we must continue to lower taxes: we will do it on production taxes, because that penalizes industry, and we will also do it on households, income tax, with a reduction of 2 billion euros that we will make as soon as the conditions are met”added the Minister.
Anxious to better protect patents and intellectual property, Bruno Le Maire has announced that he wants to strengthen the control of foreign investments, by broadening it “to the activities of extraction and transformation of critical raw materials”recalling that China has done the same.
The control, automatic when a non-European investor buys 10% or more of the capital of a firm, would be extended to the acquisition of holdings in “French branches of foreign companies”he specified.
For entrepreneurs, the minister also said he wanted “keep simplifying” and, for this, bring together ““simplification foundations” in the next three months”. He also said he wanted to work “to the rapid development of employee share ownership”.
“Cardinal value”
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Bruno Le Maire insisted on the need to “pursue the reform of unemployment insurance”for which the government has sent the social partners a very tight roadmap, with the aim of reaching an agreement on new compensation rules by 15 November.
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According to him, a greater gap between income from work and benefits is necessary to reduce the unemployment rate from 7% to 5%.
“Work will remain the cardinal value of our economic policy”he hammered, lambasting “all the fads of returning to retirement at 60 and ‘working less’ that have led to our collective impoverishment”.
The secretary general of the Confederation of Small and Medium-Sized Enterprises (CPME), Jean-Eudes du Mesnil du Buisson, told AFP that the minister’s speech raised “a sense of hope” but wished “more coherence between ideas that go into [le] sens [des PME] and practice”.
Thus, the CPME does not admit defeat regarding the CVAE, which it hoped to be abolished this year, and will now “discuss with parliamentarians” before the debate on the draft budget this autumn.
The Mayor also said he wanted to tackle the recovery of fines. “No one can understand (…) that you have hundreds of thousands of fines that are never paid, by people who do not respect any rules (…). I cannot accept that only one third of tort fixed fines are actually paid”he insisted.
No one is allowed to make “arm of honor to the common rules”added the minister, who was speaking three days before his interior counterpart, Gérald Darmanin.
The latter hinted that he could be a candidate for the presidential election of 2027, an intention also attributed to the tenant of Bercy, despite his denials.
“I have no criticism to make of a friend, a government colleague who expresses his sensitivity, who brings together (…) and who is obviously part of the presidential majority “said the Mayor.
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