The governor of the Banque de France warned against “excessive wage costs” and “too heavy taxes”

by time news

2024-07-11 08:39:03

Get out of the political context and return to the economic situation and “know the questions of truth”. Four days after the second round of legislative elections, the governor of the Bank of France François Villeroy de Galhau warned of the risks and asked political leaders to avoid “excessive payments” for companies.

Asked about the French statement about the proposal of the New Popular Front to raise the minimum wage by more than 200 euros to bring it to the net of 1,600 euros, the boss of the Bank of France was exclusive. Even if the assessments have not been measured for this or that measure, “I believe that in the economic competition, our SMEs, our businesses cannot be burdened by excessive payment costs, with wages of at least, and through heavy taxes,” he explained, adding: “It will be very bad for immediate employment, and it will be very bad for purchasing power in the long run. »

For Marc Sanchez, president of the Union of Independents (SDI), the additional cost linked to the increase in the minimum wage to net 1,600 euros will simply be “unbearable. With social costs, this will add 530 to 540 euros per month, i.e. for a businessman with three employees, an additional annual cost of 18,000 euros”;

Already the Banque de France has reported uncertainty among entrepreneurs “at the highest levels” from 2022, the governor proposed to disperse to “tell the truth” and “know the requirements of the truth”.

“We spend much more than we pay in taxes”

“The fact is that our economy has strengths, we are the 7th economy in the world, 30 French people are employed, many successful companies… “Two major weaknesses of the French economy”.

“We buy more than we produce, that gives us our external deficit,” the governor emphasized. And “we spend, including on social security and pensions, much more than we pay in taxes.” This gives rise to a budget deficit,” concluded François Villeroy de Galhau.


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