While budgetary discussions are getting bogged down in the National Assembly and raising the threat of a motion of censure against the government of Michel Barnier, the accounts of the French State see 300 million euros slip away each year. euros under an administrative agreement with Switzerland dating from 2009.
This shortfall is particularly highlighted in a confidential report from the General Inspectorate of Finance and the Inspectorate of Social Affairs that Franceinfo was able to consult. According to the settlement concluded between the two countries around fifteen years ago, large French multinational companies benefit from a special regime for their contributions to social security contributions. They have the possibility of attaching their executives to a subsidiary established in Switzerland, while having them work in France. Thus, these employees are affiliated with Lamal and not with Social Security, which allows large groups to pay less social contributions.
A burden for the government
“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 Franceinfo, citing the report which notes that the beneficiaries occupy “functions related to the development of an international career” and can officially benefit from this exemption for 6 years. 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. “The government is therefore considering withdrawing from this arrangement. A few days ago, the Social Security department had the green light to take action on these derogatory practices,” reports Franceinfo.
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