2024-11-21 01:11:00
The Minister of the Economy, Antoine Armand, at the National Assembly, in Paris, October 22, 2024. STEPHANIE LECOCQ / REUTERS
After the Senate’s reduction in reductions in employer contributions in the Social Security budget (PLFSS), the Minister of the Economy, Antoine Armand, warns of the temptation to want to tax businesses more.
These latter “must not be the adjustment variable”he warns in an interview with Parisian, published Wednesday, November 20 in the evening.
The elimination of reductions in charges, even reduced to 3 billion euros by the Senate on Tuesday evening – compared to 4 billion in the initial text of the Social Security budget project (PLFSS) – displeases businesses and the Macronist camp, because they appear to go against the supply policy sustained almost without fail since 2017.
“My political family carries a message: it is not by bludgeoning businesses and increasing labor costs that we create jobs and growth”remarks Mr. Armand. “The EPR group [Ensemble pour la République] is right to insist: we must go as far as possible to preserve contribution reductions”he continues, adding: “Be careful of the excess tax! »while the idea of an increase in the mobility payment, an employer contribution to the financing of public transport, is looming.
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“I am Michel Barnier’s minister and above all I belong to the Ensemble pour la République family. Let’s stop being afraid of words: we are in a coalition. This means that political forces that don’t agree on everything work together.”he adds in particular about the sticking points between Michel Barnier and the EPR deputies.
A “fair and responsible” interview, judge Gabriel Attal
These remarks sparked a chorus of praise from the latter, and particularly from their president, Gabriel Attal, who, on the X platform, judges the interview with Mr. Armand “fair and responsible”. With the deputies of the EPR group, “we continue to defend the competitiveness of our economy in the service of employment. Alternative paths to increasing charges exist. Thank you to the Prime Minister and the government for listening, the work continues with them”assures the former tenant of Matignon.
Mr. Attal republished at the same time another message on X from the group of EPR deputies, who welcomed the interview just after its publication, arguing that “we cannot take the risk of increasing labor costs”.
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In the interview, Mr. Armand judges «irresponsible» All “pseudo-blackmail into resignation”in case his requests are not heard, and recalls that Mr. Barnier “has always opened the door to adjustments in return for savings proposals”.
The risk of the motion of censure
Among these possible savings, he mentions the tightening of unemployment insurance conditions, already proposed in the spring. He recalls that he is in favor of “a debate on working time”has “touching the lifestyle of the State”or medical transport by taxi, “which costs Health Insurance 3 billion euros per year. Or 50,000 euros per year per taxi”.
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He seems to hope that the motion of censure which would result from recourse to article 49.3 of the Constitution by the government on the budget would not be adopted, while Marine Le Pen is currently threatening to join it. “How could the French understand that oppositions who share almost nothing would nevertheless vote together on a motion of censure, effectively putting France without a budget and without a government on Christmas Eve? »he asks himself.
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Questioned about the president of the deputies of the Les Républicains party (the Republican Right group), Laurent Wauquiez, who regularly irritates the EPR group, Antoine Armand judges that the political situation “is too new to have any qualms. If sometimes some people have methods, postures or positions that provoke a reaction, let’s not fall into the trap”.
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What strategies does Antoine Armand suggest to maintain economic competitiveness without imposing excessive burdens on businesses?
**Interview with Antoine Armand, Minister of the Economy**
**Interviewer**: Thank you for joining us, Mr. Armand. You recently expressed concerns about increasing labor costs and the need to preserve employer contribution reductions. Can you elaborate on your viewpoint?
**Antoine Armand**: Absolutely. It’s crucial to understand that we cannot create jobs and foster growth by burdening businesses with higher taxes and labor costs. My political family believes that employers should not be the adjustment variable for budgetary issues. The Ensemble pour la République (EPR) group insists on maintaining our current stance on contributing towards economic competitiveness and employment. We must carefully navigate the conversation around taxes to avoid excessive burdens on businesses.
**Interviewer**: You mentioned the potential increase in the mobility payment. How do you believe this will affect employers and the economy as a whole?
**Antoine Armand**: Any discussion around increasing labor costs, including the mobility payment, must be approached with caution. While we do want to support public transport, we must find alternative funding sources that do not jeopardize the financial stability of our businesses. It’s imperative to keep the economy thriving while implementing policies that support public services.
**Interviewer**: There seems to be a division within the government regarding employer contributions and support for the workforce. How do you reconcile those differing viewpoints?
**Antoine Armand**: We are in a coalition, which means that not all political forces will agree on everything. However, it’s essential to have open dialogues where we can address these sticking points. Michel Barnier has always shown openness to adjustments if they come with sound savings proposals. It’s about finding that balance.
**Interviewer**: Gabriel Attal praised your recent interview as “fair and responsible.” What message do you think he is trying to convey to the public regarding economic policy?
**Antoine Armand**: He is affirming that our stance, which prioritizes competitiveness and job creation, is justified. There are indeed alternative paths to avoid increasing charges on businesses. We need to focus on constructive solutions that benefit both the economy and the workforce without risking job losses or stifling growth.
**Interviewer**: Lastly, what do you see as the primary risks if the government fails to heed these warnings about taxation and employer contributions?
**Antoine Armand**: The biggest risk is the potential for a motion of censure, which would create instability. If we don’t make prudent decisions regarding taxation and contributions, we could see a backlash from businesses, leading to job losses and a decline in economic growth. We must proceed wisely and ensure that our policies support growth rather than hinder it.
**Interviewer**: Thank you for your insights, Mr. Armand.
**Antoine Armand**: Thank you for having me. It’s essential to keep this dialog going as we navigate the complexities of our economic policies.