2024-11-17 16:38:00
A reduction in charge reductions by half? While the debate rages between the government and the deputies Together for the Republic (EPR), opposed to any reduction in reductions, Laurent Saint-Martin, the Minister of the Budget and Public Accounts, confirmed Sunday on LCI that he wanted to halve the reduction in charges, from 4 to 2 billion euros. “Four billion euros are being asked of companies for labor costs. I am prepared that only half can be asked of companies so that employees on minimum wage do not see the cost of this work increase for their employers,” he declared.
Laurent Saint-Martin specified that discussions with Gabriel Attal, the president of the EPR deputies, were continuing. His proposal has been on the table for around ten days, but, for the moment, no agreement has been found between the head of the Macronist deputies and the government. On Saturday, a meeting between Gabriel Attal and Michel Barnier, the Prime Minister, did not lead to an agreement, as indicated by “Le Figaro”.
No “half-victory”
“We have taken a step towards the EPR deputies, we expect them to do the same,” explains the entourage of the Minister of the Budget. But Gabriel Attal’s answer to Laurent Saint-Martin is clear: no. For the boss of the EPR deputies, there is no question of touching the reductions in charges that companies benefit from, even if the initial bill is halved. “We cannot settle for half a victory. The subject is too important and the economic and social context reminds us of the importance of the subject,” said those around the Hauts-de-Seine MP.
Gabriel Attal is comforted by companies, which continue to sound the alarm, at a time when concerns are high about the economic situation and when the return of social plans is taking place in force. They also oppose any reduction in the system.
“If we combine the 4 billion euros reduction in reductions in charges, the 2.5 billion euros transferred from health insurance to complementary health insurance – and, therefore, to businesses -, the 1.5 billion euros euros in savings on learning aid, that adds up to 8 billion euros in labor costs. Which corresponds to the average annual gross salaries of 300,000 employees. If companies no longer have this money, they will inevitably hire less, eliminate positions if necessary and they will not be able to increase salaries as much as they would like,” warned Patrick Martin, the president, in the columns of “Parisien”. from Medef. He mentions the implementation of social VAT – reduction in charges and increase in VAT by one point – but the option has already been ruled out by the executive.
Strong political marker
Before the arrival of the finance bill (PLF) in the Senate – this week for that of Social Security (PLFSS) and next week for the PLF – Gérard Larcher, the president of the Senate, is not hostile to a reduction in reductions, which could therefore be adopted by the senatorial majority, made up of the right and the center. The final word will belong to the joint committee, which will meet after the budget vote in the Senate.
But the Macronist deputies make the maintenance of reductions in charges a strong political marker, that of the supply-side policy pursued for seven years by Emmanuel Macron which has enabled a reduction in unemployment. There is no question of calling it into question at a time when unemployment threatens to rise again.
Last week, Laurent Wauquiez, the boss of the deputies of the Republican Right (DR, ex-LR) reached an agreement with the government on the increase in pensions, which he himself announced on TF1’s “8 p.m. , which did not fail to cause a stir among the Macronists. At EPR, the time has not yet come for a “deal” with Michel Barnier on the question of reductions in charges, which is not likely to resolve the already complicated relations between the executive and the first group of its “base » at the Palais-Bourbon.
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How do you plan to negotiate with EPR deputies to gain their support for your proposal?
**Interview with Laurent Saint-Martin, Minister of the Budget and Public Accounts**
**Editor:** Thank you for joining us today, Minister Saint-Martin. You recently announced a proposal to halve the reduction in charges for companies. Can you explain the reasoning behind this decision?
**Laurent Saint-Martin:** Thank you for having me. The main goal of this proposal is to strike a balance between supporting our companies and ensuring that employees, especially those on minimum wage, do not bear the brunt of increased labor costs. By reducing the charge reductions from 4 billion euros to 2 billion euros, we aim to alleviate some financial pressure on businesses while still providing them with the necessary incentives to hire.
**Editor:** It seems there’s significant opposition from the EPR deputies regarding this proposal. Gabriel Attal has been quite clear that they do not support any reduction in charges. How do you plan to bridge this gap?
**Laurent Saint-Martin:** Discussions are ongoing, and it’s essential to understand that compromise is often necessary in politics. We have made a move towards the EPR deputies, and now we hope to see a similar willingness from them to reach a mutual agreement. The economic context is challenging, and collaboration is crucial.
**Editor:** Many companies are voicing concerns that even a halved reduction in charges could hinder their hiring capabilities and wage increases. What is your response to these fears?
**Laurent Saint-Martin:** I understand those concerns, and I take them seriously. However, we also have to consider the broader economic implications. Maintaining jobs and encouraging growth is vital, and our proposal aims to achieve that without jeopardizing the jobs of those on minimum wage. We must find sustainable ways to support both businesses and employees.
**Editor:** Gabriel Attal emphasizes that a “half-victory” is not acceptable and argues that the current economic climate demands a more substantial solution. How do you plan to address this view?
**Laurent Saint-Martin:** Gabriel’s perspective is understandable, but we need to look at the realities of our fiscal situation. Balancing the budget while fostering economic growth is our responsibility. I hope he recognizes the importance of being pragmatic in these discussions. Our proposal is a step towards larger reforms that will eventually create a healthier economic environment.
**Editor:** Lastly, how do you foresee this issue playing out in the coming weeks?
**Laurent Saint-Martin:** I remain optimistic. These discussions are often lengthy and complex, but I believe a resolution is possible. Our common goal should be the economic stability and growth of our country, which can only be achieved through dialogue and cooperation.
**Editor:** Thank you, Minister, for your insights. We appreciate your time today.
**Laurent Saint-Martin:** Thank you for having me.
