09/30/24 – 10:18 p.m. – A “fiscal shock” announced by Michel Barnier during his general policy declaration?
In any case, this is what is happening this Monday evening The Parisian. Evoking a declaration “shorter than usual”, in the words of Matignon, but which should still occupy the deputies for almost an hour, this text would be the result of “collective work” fruit of a thousand and consultations with Michel Barnier in recent weeks. But above all, the daily affirms that faced with the country’s economic situation, the Prime Minister would not intend to shy away and would even consider proposing a “fiscal shock” whose aim would be to garner 15 to 18 billion euros in revenue in more. Among the measures envisaged by Michel Barnier, The Parisian evokes the tripling of the exceptional contribution on high incomes, with no less than three billion euros hoped for, but also a surtax on businesses – eight billion euros -, as well as an increase in taxes on electricity – again three billion euros more -, and an additional contribution requested from energy companies and on share buybacks – three billion euros. Several programming laws, which had been passed in recent years, could also be postponed. As for the deficit target of 3% in 2027, Michel Barnier would like to push it back to 2029.
09/30/24 – 8:34 p.m. – Michel Barnier does not intend to seek a vote of confidence after his general policy declaration
Just like his predecessors Élisabeth Borne and Gabriel Attal, Michel Barnier will not seek a vote of confidence on Tuesday following his highly anticipated general policy declaration to the National Assembly, his entourage announced this Monday evening as revealed Le Figaro and Europe 1. The opposite would have been daring, even risky: in the event of defeat, the government must in principle resign. While the Prime Minister is in no way obliged to comply with this vote of confidence by the Constitution, submitting to it would have been dangerous since he does not have an absolute majority in the hemicycle of the Bourbon palace.
09/30/24 – 6:31 p.m. – Matignon distances himself from the Élysée
According to information from BFMTV, the next report from the Council of Ministers, like the following ones, will no longer take place at the Élysée Palace, but from 20 avenue de Ségur which houses an annex of… Matignon. Speaking to the 24-hour news channel, Michel Barnier’s entourage explains that this choice “is the result of an agreement between the Prime Minister and the President of the Republic.” And to point out: “This illustrates the new institutional balance.”
09/30/24 – 4:22 p.m. – “We cannot continue to live on credit”, says Jean-Louis Debré
“What matters to me will be the announcements in this important parliamentary sequence. The general policy declaration will give intentions. Everyone will applaud. But we must tell the truth about France’s financial situation. Every day, we learn that the debt is greater than what we had anticipated. Have we been hiding the situation for months and months?” asks Jean-Louis Debré, former president of the Assembly. national at the microphone of France Info this Monday, September 30, 2024.
“The measures that are going to be taken in the budget are going to have to respond to that. I admire those who say that they don’t want additional taxes. Nobody wants that. But those who say that are probably the ones who are responsible for the economic and financial situation of France we cannot continue to live on credit,” he says.
09/30/24 – 4:08 p.m. – What position on pension reform?
On September 22, the Prime Minister declared on France 2’s 8 p.m. news that he wanted to “take the time to improve” pension reform. “We have a law which provides for a financial framework and I think that this financial framework must be preserved,” he indicated. What about oppositions? On the NFP and RN side: we clearly want the repeal of this reform. A proposed repeal law will be tabled by the Lepenist party on October 31. So, what will be Michel Barnier’s position and the content of his remarks during his general policy speech? Answer this Tuesday, October 1 at 3 p.m.
09/30/24 – 1:46 p.m. – An exceptional tax on certain large groups
“We are going to appeal, exceptionally and temporarily, to those who can contribute to this effort,” declared Michel Barnier last Friday in the columns of the Journal de Saône-et-Loire, concerning a possible increase in taxes. Concretely, what does this mean? An “exceptional contribution to the profits of large companies” is indeed envisaged, as in 2017, according to information from Le Monde. Affected groups could be forced to pay a surcharge of 8.5 percentage points, on top of the 25% corporate tax. A measure which could bring in 8 billion euros to the state coffers. The government is currently insisting on the temporary nature of this measure, so that “large companies contribute to the recovery of public finances”. This measure should only concern groups with a turnover greater than or equal to 1 billion euros and liable for corporate tax.
