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Taxes, single social allowance, immigration… What Michel Barnier said this Thursday evening

Two days after his general policy speech, Michel Barnier, in post at Matignon since September 5, provided his after-sales service on October 3, 2024. He was the guest of The Eventthe political show of 2. He notably returned to questions of taxation, immigration and even health.

Also read: Taxes, “red lines”… What to remember from Michel Barnier’s general policy speech

Tax increases specified

Since his appointment, the Prime Minister has mentioned a main project, the reduction of France’s deficit, which he wants to see fall below 3% by 2029. Among the solutions put forward: returning to the Macronist leitmotif of refusal of tax increases.

If his predecessor began working on debt reduction with “substantial efforts”there was no “sufficient credit freeze by Gabriel Attal”estimated Michel Barnier. “I want to be efficient”he insisted.

“There will be no fiscal shock”he assures, recalling that in his solution, there will be a two-thirds reduction in public spending and a third on taxes on the largest companies, those with more than 1 billion in turnover. Temporary efforts, he assures. He mentions a duration of one or two years. This represents around 300 companies, he estimates.

What about the politicians who are resistant to this tax increase, including Gérald Darmanin, who makes it his red line? “I don’t have time for controversies. » But he says he is open to other proposals, coming from the former Minister of the Interior, or others.

Merger of public services

The wealthiest taxpayers will be involved. Who are they? Michel Barnier gives the example of a couple who would earn €500,000. He hopes to recover two billion euros thanks to this tax.

As for the postponement of the indexation of pensions to inflation for six months, he recalls that this “will take place in 2025, but rather on 1is July […] I ask for an effort from everyone and I think this one is fair”wanted to reassure Michel Barnier. According to the new Prime Minister, this will allow the State to save part of the 60 billion that the government must find.

Also read: Gérald Darmanin considers the government budget “unacceptable” because of the tax increase

The government counts “merge public services” et “do not replace all civil servants” to save money, he further announced.

A single social allowance project

Michel Barnier announces the opening of the single social allowance project, “so that it pays more to work than not to work”. “Allocations will be smoothed to encourage wage increases”indicates the Prime Minister.

The zero-interest loan will be extended to all first-time buyers, he adds.

A postponement of the indexation of retirement pensions

It was not a surprise: Michel Barnier confirmed the postponement of the indexation of pensions to inflation for six months. “The indexation will take place in 2025, but rather on 1is July […] I ask for an effort from everyone and I think this one is fair”he wanted to reassure.

Also read: Retirements. How much will you lose with the postponement of the revaluation to July 2025?

There is no “no more taboo” on the number of medical students, estimated Michel Barnier. The number of interns next year will increase to 11,500, compared to 8,500 this year. A “Hippocrates program” will be put in place to encourage them to settle in rural areas. He would also like retired doctors who can return to service to have an advantageous tax status.

Towards changes in Immigration law

“I’m the one who sets the line” on the subject of immigration and “there will be rigorous measures to control (it)”he assured after controversial remarks from Minister of the Interior Bruno Retailleau, particularly on the rule of law.

“Immigration is a question that we must look at with lucidity and which we must face with pragmatism”assured Michel Barnier before Parliament on Tuesday. “Immigration, when it is accepted, chosen, when we welcome people who are in danger, it is the honor of our country to accept them”evoking entrepreneurs, athletes, musicians who set an example in their integration.

There will be more rigorous measures to better control the borders external to Europe, “a sieve”, believes Michel Barnier. He continues: “When necessary we will control our own borders”to welcome with more dignity those we welcome.

“Perhaps there will be changes to the law. We will exploit all useful possibilities” permitted by this law, indicates Michel Barnier.

And « dialogue with the countries of departure » is necessary, to improve living conditions and encourage the return of illegal immigrants to these countries.

We can better manage State Medical Aid (AME), believes Michel Barnier. He also wants to better secure vital cards, by linking them to biometric identity cards.

Caroline Roux questions him about the OQTF, taking the example of Philippine, raped and killed by a man under an obligation to leave the territory. “We need to [les OQTF] to execute, that’s the role of Bruno Retailleau”said the Prime Minister.

A risk of conflagration in the Middle East

Isn’t it already too late to avoid a runaway? The Prime Minister responds in the negative, even if he recognizes “a risk”. He evokes a situation of self-defense for Israel after the events of October 7. “Israel’s security is non-negotiable. » However, he spoke of “too numerous” victims in Gaza.

The end-of-life debate will likely pick up where it left off

Michel Barnier indicates that he agreed with the bill which was suspended with the dissolution. “I have said and I confirm that I am in favor of resuming work where it was interrupted”to save time.

“We have to do things seriously, by listening to the caregivers. »

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