Patrick Martin, president of the Medef, France's largest employers' organization, has expressed concerns about the economic proposals of two major political parties ahead of the presidential election. He addressed these concerns on LCI, a French news channel, commenting on the budget plan proposed by the National Rally (RN), a right-wing party. The plan includes 140 billion euros in net savings by 2032 compared to 2026, aiming to restore primary balance in 18 months and reduce the public deficit to below 3% by 2030. This plan also calls for reducing taxes by at least 30 billion euros net, including a reduction in production taxes by 20 billion euros and a move to simplify the administrative structure and regulations.
Martin acknowledged that some of the National Rally's measures, particularly those aimed at reducing production taxes, are in the right direction, as they could enhance competitiveness, boost growth, and create jobs. However, he pointed out that many of the figures presented are "a pious wish" and noted "many approximations, especially on pensions, which is the cornerstone of the country's recovery of working more." He specifically criticized the National Rally's proposal to lower the retirement age back to 62 years, or even to 60 years, contrasting it with his own support for a higher retirement age, citing Spain as an example.
Martin emphasized the urgent need to make savings in social regimes and pensions, stating that the National Rally's budget is "incomplete." He also commented on the government's 2027 budget, estimating that the 20 billion euros of efforts requested from companies is "exact." This figure has been contested by the government, which stated that companies would be asked to contribute only 10 billion euros. Martin estimated that the impact on social charges and complementary health insurance would amount to 12 billion euros on the cost of labor, noting that this is as much money as one cannot put into the revaluation of salaries.
Martin also supported the governor of the Bank of France's comments to the Financial Times, warning that France risks being "strangled by interest rates" if it does not correct its public finances. He noted that Jean-Luc Mélenchon, leader of LFI, had threatened to sue him for "treason" if he reached the presidency in 2027. Martin stated that if LFI were to win in 2027, it would "drive away the bosses," including himself, adding that it would not only be a physical but also a financial flight. He concluded that such a scenario would lead the business community to "put down the pencil and think that we are in a country that is becoming horribly dangerous," questioning the incentive to work in a country where efforts might lead to nothing and result in a "bottomless pit."
Business Leader Criticizes Economic Plans of French Political Extremes Ahead of Election
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