Public deficit, social VAT, CVAE… the president of Medef believes that France must make savings “in the right place”

Public deficit, social VAT, CVAE… the president of Medef believes that France must make savings “in the right place”

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He steps up to the plate and castigates the government. “ We are worried of what we hear here and there,” said this Sunday the President of the French Business Movement (Medef) Patrick Martin, faced with the risk of seeing tax cuts for businesses called into question for budgetary reasons. “Economic activity is slowing down,” he criticized. “The widening deficit reflects exactly the economic slowdown. »

” There CVAE (Contribution on the added value of businesses) was to be completely eliminated in 2023. Then we were told that this would be spread over 2023-2024. Then it would gradually die out by 2027,” recalled the leader in an interview with Sunday newspaper. According to him, “a further questioning” of the timetable for removing this tax “would undermine the confidence that we can place in the word of the State”.

“Look for savings”

For him, France must “search for savings”, but must do so “in the right place”. “That is to say on the operating expenses of public functions,” argued Patrick Martin. Likewise, the president of Medef called for “dealing with this problem of public finances which has continued to worsen for decades”, but by moving away from a “classic logic “budgetary annuality” “.

After presenting this Tuesday a public deficit of 5.5% of Gross Domestic Product for 2023, well beyond the 4.9% initially planned, the government is looking for savings avenues. The Minister of the Economy Bruno Le Maire refused at the start of the week any tax increase, even confirming on Tuesday the planned elimination of the CVAE and tax cuts for certain households. The minister then said on Saturday in an interview with Ouest-France that he would not touch on the care of long-term illnesses but mentioned a new form of contract for workers over 55 years old.

The CPME, the second employers’ organization, judged this Thursday “positive” the government’s desire not to increase taxes, and hoped that the commitment to completely abolish the CVAE by the end of the five-year term would be kept. “Challenging the removal of the CVAE which weighs massively on the industry would contribute to increasing the risk of dropping out compared to our competitors,” Patrick Martin further affirmed this Sunday.

Also questioned about the possibility of a social VAT, which would make it possible to transfer part of the charges on salaries to VAT, Patrick Martin does not consider this solution to be effective in relaunching the economy. “French companies still bear 60 billion more in production taxes and as much in social charges as the average European company. If we want to be competitive and attractive, this is what we must tackle,” he said. “It is quite illogical, and even unfair, that companies and therefore their employees bear most of the cost of French social production.”

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