2024-11-21 01:11:00
The Minister of the Economy, Antoine Armand, at the National Assembly, in Paris, October 22, 2024. STÉPHANIE LECOCQ / REUTERS
After the Senate’s reduction of 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 removal 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 policy of sustained supply 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 are Antoine Armand’s views on the impact of employer contributions and taxes on job creation and economic growth?
**Interview with Antoine Armand, Minister of the Economy**
**Host:** Welcome, Mr. Armand. Thank you for joining us today.
**Antoine Armand:** Thank you for having me.
**Host:** In your recent interview, you made some strong remarks about the government’s stance on employer contributions and taxes. You said, “It is not by bludgeoning businesses and increasing labor costs that we create jobs and growth.” Could you elaborate on this perspective?
**Antoine Armand:** Certainly. My political agenda emphasizes that businesses should not be treated as a variable to adjust for economic policies. We must focus on competitive practices that encourage job creation and economic growth without imposing excessive tax burdens on these entities. The EPR group stands firmly in support of preserving contribution reductions to help achieve this balance.
**Host:** The Senate has indicated a reduction in employer contribution reductions in the Social Security budget. How do you view this decision?
**Antoine Armand:** The reduction of these contributions, now set at 3 billion euros down from an initial 4 billion, is concerning as it runs contrary to our longstanding policy to support businesses since 2017. We need to prioritize maintaining a favorable environment for businesses to thrive if we want to sustain employment levels.
**Host:** You also mentioned cautioning against “excess tax.” What specific policies do you see potentially escalating this issue?
**Antoine Armand:** An immediate concern is the proposal to increase the mobility payment—a contribution from employers to public transport funding. This and other similar policies could add to the overall labor costs and undermine our economic stability.
**Host:** Your words received praise from party leaders like Gabriel Attal, who deemed your interview “fair and responsible.” How do you assess the current coalition’s dynamics regarding these economic issues?
**Antoine Armand:** The coalition must work together despite varying opinions. My affiliation with the EPR family signifies a commitment to collaborative problem-solving to strengthen our economy. We need to navigate these discussions constructively to ensure that our critical initiatives align.
**Host:** Lastly, you addressed the risk of “pseudo-blackmail into resignation” when your requests are not met. Can you clarify what you mean by that?
**Antoine Armand:** This refers to tactics that pressure the government into action based on fear of negative outcomes. It’s vital that we maintain a candid dialog rooted in rational decision-making rather than threats. Michel Barnier has always shown a willingness to consider adjustments in exchange for sensible savings proposals, which is the way forward.
**Host:** Thank you, Mr. Armand, for your candid insights. We appreciate your time today.
**Antoine Armand:** Thank you for having me. It’s been a pleasure.
