2024-08-16 14:44:53
On a political level, the “Action Agreement” published last Tuesday by Gabriel Attal has not been a great success. Barely revealed, it has already been condemned by all the other parties that received it, all of whom criticize the lack of questioning by the presidential camp. However, the text shows for the first time some changes in the core of macroeconomics: economic policy.
Certain fundamentals remain, including the commitment to budget seriousness and to restore the deficit to below 3% of GDP by 2027, and even to “continue with attractive policies” and “fiscal stability or support for our innovative companies”.
Opening on the left
But the presidential camp is making some gestures, especially towards the left. Thus, the text expresses the desire to “apply the principle of rights and duties to the beneficiaries of public spending (citizens, businesses, communities), making them accountable”. Specifically, for businesses, this amounts to “establishing clear incentives in terms of job creation and investment”.
Since 2017, various left-wing parties have proposed amendments in every fiscal bill to make public aid to companies conditional on criteria such as job creation, but each time they have been rejected by the presidential camp. This would therefore be a rather significant shift. “Conditions already exist for certain programs (apprenticeships, research tax credits, etc.). In future negotiations, we can imagine stricter ones,” noted Jean-René Cazeneuve, Gers deputy and former general rapporteur of the budget in the National Assembly.
On the tax front, the Republic Group also expressed its readiness to discuss certain proposals, such as “taxing undue profits or rents to achieve greater tax justice”, a phrase that seems broader than just taxing energy companies and rents that have been promised. “It is excess profits in a broad sense. Mentioning this is an open door in the context of possible negotiations, not an item to be defined and arbitrated at this stage,” explained those around Gabriel Attal.
ISF Vertical
Above all, the text invites a possible discussion of a “special contribution to the financing of major transitions”. This proposal seems to echo that proposed by Jean Pisani-Ferry and Selma Mahfouz in their 2023 report on financing the climate transition, who mentioned the idea of a “green ISF” but were quickly buried by Bruno Le Maire. Jean-René Cazeneuve acknowledges that “the financing of the ecological transition remains to be done” and that he hopes to see in these proposals “not a change of philosophy, but a necessary openness”.
Gérald Darmanin, keen to stick to his own line close to social Gaullistism, also has a distinctive voice on these economic issues. In particular, on the minimum wage, the New Popular Front wants to raise it to 1,600 euros net. “In my opinion, the debate on the minimum wage is not stupid. We can’t praise the working society and ignore this France where work doesn’t get by. But this must be done by business,” explains the resigning interior minister.
The boss’s patriotic logic
The latter said he was “not in favor of questioning supply policies”. This does not prevent some changes. “On the tax side, we also have to look at the digital side. I think there is also a need to foster a patriotic logic within companies. And, so to speak, many bosses are already contributing to the country’s recovery and the challenge of wealth distribution,” assures the elected official of Tourcoing.
Finally, the former Minister of Public Accounts believes that it is necessary to “save, but with discernment”. “It is absurd to implement these policies based on the core of the State (army, interior, justice) without considering the effectiveness of social spending, which represents more than 30% of GDP and is supported by the government. Especially those who work”, emphasizes Gérald Darmanin. He takes the opportunity to make a small jibe at Gabriel Attal: “That is why I am disappointed that the reform of unemployment insurance, based on a virtuous logic, has been withdrawn”.
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