The French state budget is so strained that lawmakers are proposing to make French people work seven hours more per year, without pay, the equivalent of a day's work, in order to generate additional funds for the social security funds. the state.
This measure, which was approved by the upper house of the Senate on Wednesday but which could still be excluded from the final finance bill, would generate 2.5 billion euros ($2.63 billion) in additional revenue thanks to additional salary costs.
It comes as Prime Minister Michel Barnier's fragile ruling coalition attempts to push through a 2025 budget in a sharply divided parliament, with Marine Le Pen's far-right National Rally (RN) threatening to overthrow the government through a vote of no confidence.
The amendment, proposed by center-right senator Elisabeth Doineau, would force citizens to work seven hours more at a given time of the year, without receiving a salary, but in return for which their employers would have to pay additional social security contributions.
An older idea, which would have had the same effect on the budget, was to eliminate one of France's official public holidays and make people work on that day. However, there was no agreement on which holiday to remove.
France already removed Pentecost Monday as a public holiday in 2005 to better finance health care. Although France is famous for introducing the 35-hour week in 2000, the French actually work an average of 36 hours a week, longer than most of their Western European counterparts.
COMPANIES CONCERNED
After spending spiraled out of control this year and tax revenues fell short of expectations, Mr Barnier's government proposed making €60 billion in savings in its 2025 budget by cutting spending and increasing taxes.
Although the government has focused most of its tax increases on the rich and big businesses, its finance bill plans to reduce the tax incentive on employers' social security contributions for low-income workers.
The measure was expected to raise 4 billion euros, but the government has since opened the door to a lower figure if lawmakers come up with an alternative to make up the difference.
However, businesses are already protesting that cutting the tax incentive would increase labor costs, which are already one of the highest in Europe, largely due to heavy social security contributions.
Julien Crepin, director of cleaning company Bio Propre near Paris, said any increase in labor costs would threaten his business model and force him to raise prices, which could lead to layoffs.
“We have small margins in our business. An earthquake like that would knock us out,” he told Reuters, adding that it would be far better to get rid of a public holiday.
Even Mr Barnier's finance minister, Antoine Armand, is critical of the reduction in the tax incentive, saying the French generally need to work longer.
“An extra hour of work means an extra hour of social security contributions,” he told the newspaper Le Parisien on Wednesday.
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