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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How does Antoine Armand propose to balance public transport funding with business competitiveness?
**Interview with Antoine Armand, Minister of the Economy**
*Date: November 21, 2024*
**Interviewer**: Thank you for joining us today, Minister Armand. You’ve recently expressed strong concerns regarding increased taxation on businesses and labor costs. Can you elaborate on your stance?
**Antoine Armand**: Absolutely. My political family believes that we cannot achieve job growth and economic expansion by harshly taxing businesses and escalating labor costs. It fundamentally undermines the environment we need for employment to thrive. The Ensemble pour la République (EPR) group is advocating for the preservation of contribution reductions, as these are essential for maintaining business competitiveness.
**Interviewer**: There have been discussions about the Senate’s decision to reduce employer contribution reductions. How do you view this adjustment?
**Antoine Armand**: The reduction of these contributions—even if it was scaled down from an initial plan—alarmed us, as it seems to contradict our longstanding approach to supporting sustained supply and growth since 2017. We need to be cautious about treating businesses as the adjustment variable in fiscal policy. An excessive tax burden will only deter growth.
**Interviewer**: You mentioned the idea of increasing the mobility payment. What is your position on this?
**Antoine Armand**: While enhancing public transport funding is important, we must be vigilant about not burdening companies further. The key is finding alternative paths that do not involve raising labor costs, which could adversely affect employment rates.
**Interviewer**: Your remarks have garnered support from various quarters, including your colleague Gabriel Attal. How do you assess the climate in the EPR coalition?
**Antoine Armand**: I believe we are engaged in meaningful discussions within our coalition. Yes, we have our differences, but it is imperative that we collaborate to push for what is beneficial to our economy as a whole. The dialog is vital, and I appreciate the support we’ve received, as it signifies a commitment to competitiveness and responsible governance.
**Interviewer**: Lastly, you referred to some forms of “pseudo-blackmail” regarding requests for adjustments. Could you provide clarity on this point?
**Antoine Armand**: Yes, I feel that some threats of resignation or pulling back support if their demands aren’t met are, frankly, irresponsible. Michel Barnier has always been receptive to making adjustments when accompanied by proposals for savings. It’s crucial we focus on constructive solutions rather than ultimatums that hinder progress.
**Interviewer**: Thank you for your insights, Minister Armand. Your perspective on these economic challenges is incredibly valuable as we move forward.
**Antoine Armand**: Thank you for having me. Open discussions are essential as we navigate these critical issues for our economy.