2024-10-21 11:00:00
Airbus employees in front of meteorological satellites in the room of the company’s defense and space branch, November 10, 2023 in Toulouse.” sizes=”(min-width: 1024px) 556px, 100vw” width=”664″ height=”443″/> French chemistry fears losing “15,000 jobs” within three years, according to the France Chimie federation which brings together companies in the sector. Business failures are breaking records, with 66,000 defects in twelve months according to the research firm Altares, in particular SMEs with more than 50 employees in the automotive and construction sectors. The European aircraft manufacturer Airbus has announced the elimination of 2,500 positions in its satellite producing branch within its defense and space activity, which has 35,000 employees…
The finance bill for 2025 presented by the Barnier government, which is seeking 60 billion euros in savings to hope to reach a 5% public deficit in 2025 compared to 6.1% today, comes at a critical moment for the French industry. Falling demand at national and European level, aggressive competition from the United States and China, high energy prices which are hampering its competitiveness, the sector has been accumulating difficulties since the start of the year. The CGT even denounced, Friday October 18, through its general secretary, Sophie Binet, a “extremely worrying industrial situation”saying he had identified “180 layoff plans” underway in several sectors (automotive, chemicals, glassmaking, etc.) and “around 100,000 employees” affected directly or indirectly.
The new Minister of Industry, Marc Ferracci, may try to reassure them by explaining that the budget, the examination of which begins Monday October 21 in the National Assembly, is “a basis which can naturally evolve during parliamentary debates”manufacturers have little reason to rejoice in this text. Even the research tax credit, which they all defend as a whole, spared for the moment by the government, is threatened by opposition deputies, either to reduce funding for the right, or to completely eliminate it for the left.
Measures that displease
Above all, the 2025 budget includes several tax measures that displease the industrial sectors. Starting with the increase in corporate tax, from 25% to 30%, for the 440 large companies whose turnover exceeds 1 billion euros. An increase presented as temporary by the government, which should bring in 8 billion euros in 2025 and 4 billion in 2026.
Industrialists see this as a blow to Emmanuel Macron’s promise of fiscal stability for businesses which has prevailed since 2017. The pre-debates in the Finance Committee of the National Assembly, which began on Wednesday October 16, also showed that the oppositions were determined to inflate the bill. Companies fear that the temporary situation will last longer than expected and that the effects will not only be limited to large groups, but also to the entire value chain. “Do not think that because you only touch the big ones it will not affect the small ones, because in the industrial sectors, orders from large groups will fall to their smaller subcontractors”warns Alexandre Saubot, president of France Industrie, the organization which represents the industrial branches in France.
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