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France is facing “one of the worst deficits in its history.” This is the observation of the new Minister of the Economy, Antoine Armand, on France Inter on Tuesday September 24. The new government is considering tax increases in next year’s budget. Michel Barnier plans “targeted levies” for the wealthiest households, and for businesses. The head of government is targeting the “very large companies, multinationals, which are doing well.”
Some leaders respond “why not” to the Prime Minister, as the boss of bosses, the president of MEDEF, guest on France Info on Tuesday morning. Patrick Martin says he is open to discussion, but under certain conditions.
“The State has absolutely colossal pockets of savings, many of which have been identified for years. We are first waiting for it to make savings in the country that has the highest compulsory levies in the world, the greatest public spending, and despite everything colossal deficits.”
Patrick Martin, head of MEDEFto franceinfo
“It will not be the companies that will be the adjustment variables. If necessary, exceptionally and temporarily, they will be able to make their contribution, but in small proportions. If there must be a surtax on companies, it must be very targeted, reasonable and only for 2025.“
The president of Medef is due to discuss this on Tuesday afternoon with the Prime Minister at Matignon.One of the options for this surtaxation would be to increase corporate tax from a certain level of profit, in order to therefore affect the “big companies that are doing well”.
Among them, another boss is ready to participate in this effort: Rodolphe Saadé, CEO of CMA CGM, French champion of maritime transport and logistics. “If the government decided on an exceptional solidarity contribution from large companies, we would be there”he confides in The Echoes. LHe also warns the government about changing other taxes that could put it at a disadvantage compared to its international competitors.
No comments, however, from major energy companies such as TotalEnergies or Engie.They were in the sights of the previous government, for their “super profits” made at the time of the energy crisis, during the surge in prices in 2022. Bercy had tried to recover a share of the rent, but this contribution from electricity producers only brought in 300 million euros in revenue last year, instead of the 12 billion hoped for.
DIn the boxes, the outgoing executive leaves a remodeled tax project on large power plants. This tax is denounced by the federation of the companies concerned. SAccording to our information, in recent weeks, EDF has for example proposed other options such as the payment of dividends to the State. Beyond energy, lThe new government could also decide to tax share buybacks.