While budgetary discussions are getting bogged down in the National Assembly and raising the threat of a motion of censure against Michel Barnier's government, the French state's accounts see nearly 300 escaping each year. million euros under an administrative agreement with Switzerland dating from 2009.
According to this regulation concluded between the two countries, large French groups benefit from a special regime for their contributions to social security contributions: their employees in Switzerland who are sent on temporary mission to France with another company in the group can remain subject to the Swiss social insurance and not be subject to French contributions. This exception, in derogation from the ordinary rules in force between Switzerland and EU countries, is valid for the entire duration of their mission, but for a maximum of six years.
A burden for the government
Initially, this arrangement was concluded at the request of France, specifies the Cantonal Social Insurance Office (OFAS), “with the aim of promoting cross-border mobility of workers between group companies of international dimension, taking into account the needs and specificities that are specific to them. The shortfall for French finances is, however, highlighted in a confidential report from the General Inspectorate of Finance and the Inspectorate of Social Affairs that Franceinfo was able to consult.
“Around twenty large French groups use this system, such as Total gestion international SA, Renault Nissan Global management SA, and Michelin Global Mobility SA. The process only concerns a few employees, nearly 4,500 between 2016 and 2022. These are executives paid more than 500,000 euros annually,” specifies the French media, citing the report which notes that the beneficiaries occupy “positions in relation to the development of an international career. According to the French inspections document, also consulted by The Tribune“82% of requests for this exceptional regime come from Total, Renault-Nissan and Michelin”.
This specificity – legal – represents a “loss” of 4 billion euros in total since the entry into force of this Franco-Swiss regulation, and this while the French State is regularly prey to vigorous budgetary debates and pointed out pointed out by Brussels. “Last week, the French authorities denounced this administrative arrangement with effect from January 1, 2025, as permitted by the latter,” reports the OFAS.
