French President Emmanuel Macron aims to introduce a unified social contribution by the conclusion of his five-year term.
On the TF1 stage, in a conversation with Agnès Verdier-Molinie (Ifrap), President Emmanuel Macron talked about the state of public finances on Tuesday. He defended his stance, saying, "Yep, we've splashed cash, but we've protected our productive machinery."
TF1's show, Emmanuel Macron - The Challenges of France, provided a platform for Macron and his interlocutors - including Sophie Binet, Cécile Duflot, and Tibo InShape - to tackle pressing issues. One such topic was public finances, brought up by ultraliberal essayist Agnès Verdier-Molinie. Two years before the end of his term, she inquired, "Haven't you thought it high time to find a way out of the debt cycle?".
According to Agnès Verdier-Molinie, a potential solution for the government to achieve the €40 billion euros in savings required for the 2026 budget would involve cutting expenditures, including taxes and civil servants. By her estimates, this Move would save €7 to €8 billion. Macron, in response, touted his record: "Year after year, we've increased the public debt by 1.8 points. My predecessors have faced crises too, by 1.5 points, like François Hollande, without crises".
The show also saw a heated exchange between Macron and Cécile Duflot over his label as "the president of the rentiers". On the public deficit, Macron asserted that "The real problem in France is that it's not producing enough. "I stand by my 'whatever it takes' during the Covid crisis", Macron added, "Yes, we've spent a fortune, but we've maintained our productive machinery, and we've kept unemployment at bay."
"I aim to implement the single social contribution before the end of this term"
A businessman's troubling tale of paying a patronal contribution for social dialogue, despite having no employees, was also shared on the show. Macron conceded: "There are still too many French and European norms. This simplification battle is a top priority for me, and it's a point where I think we can find common ground."
Other simplifications being considered include the "simplification of delays" and the possibility of merging the ID card and the health insurance card, provided it's constitutionally feasible.
Public finances, public debt, Emmanuel Macron
The French government is pondering various strategies to address public debt, including:
- Deficit Reduction Plan: Prime Minister François Bayrou has proposed a national referendum on a comprehensive plan to reduce France's debt and deficit[3].
- Frugal Innovation: The French government is under pressure to reduce public spending, with a goal to cut expenditures by €110 million by 2029 through frugal innovation[2].
- Budgetary Consolidation: France is implementing budget savings, mainly focusing on central government spending, as part of a long-term budgetary consolidation effort[4].
- Public Debt Management: Agence France Trésor oversees the management of the state's debt and cash flow to guarantee the best conditions for taxpayers[5].
For specific details on the discussion between Agnès Verdier-Molinie and Emmanuel Macron, I'd suggest checking the transcript or recording of the TF1 show.
- In the discussion on TF1's show, Agnès Verdier-Molinie proposed a potential solution for the government to save €7 to €8 billion for the 2026 budget, which involves cutting expenditures, including taxes and civil servants' salaries.
- Emmanuel Macron, during the same TV show, emphasized the importance of social dialogue and expressed his aim to implement the single social contribution before the end of his term, acknowledging the existence of numerous French and European norms that need to be simplified for businesses.
