The battle for the legislative elections of June 30 and July 7 is in full swing. During this electoral campaign, the three poles which are vying for the majority for this election are increasing their ingenuity to attract the most votes. However, certain measures, such as the minimum wage of 1,600 euros, are criticized and are considered very costly to the French treasury.
Indeed, the proposal of the New Popular Front (NFP), composed mainly of left-wing parties, to increase the minimum wage by 14%, so that it reaches 1,600 euros net per month (compared to 1,400 euros today) or still that of the return of retirement at 60 years old is denounced by other parties and certain employers’ organizations.
The announcement of these measures produced an outcry from opponents of this pole which is well placed for these anticipated legislative elections. In addition to the parties involved in this election who have pointed out the exorbitant cost of the measures proposed by the NFP, employers’ organizations indicate that it is impossible to absorb such a shock. Competitiveness and, therefore, employment will suffer the consequences, they warn.
For its part, the government has stepped up to denounce these measures. “ Suddenly increasing the minimum wage would be an economic catastrophe which would destabilize our SMEs and our craftsmen, cause layoffs and therefore mass unemployment such as we have not seen for 40 years. 500,000 jobs would be destroyed », declared the Minister of the Economy Bruno Le Maire.
However, the NFP defends its measures and responds to its detractors by explaining how they will be financed. The alliance of left-wing parties, in fact, revealed the costing of its program in a press conference organized on June 21.
The richest will have to pay more taxes to finance the minimum wage of 1,600 euros
The financing of the NFP program is mainly based on two levers. This involves taxing the richest and creating a positive knock-on effect for the economy by establishing the minimum wage at 1,600 euros. For SMEs that will have difficulty applying this increase in the minimum wage, the NFP provides for 0% loan mechanisms over one or two years, a solidarity fund or even a negative rate credit system while waiting for “ the virtuous effects of the general increase in employees are being felt ».
The alliance of left-wing parties also promises an amending finance law if it comes to power in order to introduce a tax on superprofits and allow the return of the wealth tax with a climate component.
These are mechanisms which should make it possible to bring in 30 billion euros to public finances (half of which thanks to the new ISF, and this, from 2024), according to these left-wing parties. With the hunt for “ privileges of billionaires », this front wishes to concentrate the tax effort on the richest by increasing the tax on the inheritance of the highest assets or by making the income tax more progressive, just like the CSG. It should be noted that regarding the return to 60 years for retirement, the NFP does not yet explain the financing of this measure.
