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At the magnificent Palace of Versailles, President Emmanuel Macron hosted 180 international leaders, including Disney, Siemens and JPMorgan, at this year’s French election to encourage foreign investment.
Confab, a former investment banker, came after the 2017 election to show how he wants to do more business in France by cutting corporate taxes, hiring and firing workers and easing regulations.
But by the end of his second term in office, the president had announced that he wanted France to be a tax-exempt country, with a statistical name “a beginner” and his political arm weakened. Confronting the left and right parties, it can no longer significantly hinder economic reforms.
The economy is in a difficult position as inflation is affecting consumers and businesses at a rate of about 6 percent, as the government’s response to the CVD-19 epidemic is low. The cost of paying off France’s huge public debt has begun to rise with interest rates, prompting a stern warning from the National Auditor.
The Disaster Cocktail reminds French business scholars that Macron is not pushing the rest of the economic agenda like the opposition. Yellow dresses Activities in 2018. Airport and train workers are on strike, and left-wing leader Jean-Luc Melencho is planning a protest against the rising cost of living.
Finance Minister Bruno Le Mere has described the government as moving forward. When asked if Macron’s business sponsor reform is over, he said in an interview: “It must continue. Not everything requires the law, so we use all the tools we have to continue to support wealth creation in France. . . We need business improvement for that.
He told Maire that the central coalition government could agree with the bloc to collect the votes it needed to pass legislation. However, this is certainly far from the case, as France has a tradition of making such political agreements.
The upcoming bill, which will help blur the effects of inflation on citizens, will not be able to get enough votes to pass, or the opposition could see a € 20bn ballot box after amendments. One banker said: “There is no doubt that major economic reforms are over.
There is still a long way to go in Macron’s to-do list. Improving the expensive pension system by raising the retirement age from 62 to 64 or 65 is the key to improving public finances. It also promises to reduce የምርት 7bn a year in “production taxes” – labor-based or building-based taxes rather than profits.
Behind the curtain, however, there are signs that politicians and executives are worried. At a recent dinner, the executive director of a large private equity firm asked if the company would continue to invest in France. “The government told me it could not do as much as before,” he said.
At a business conference in Aix-en-Provence over the weekend, corporate leaders asked if the government could handle the political and economic challenges. “They seem confident – maybe too much,” said an industry company chairman.
After all, French people still trust business. Companies from LVMH to Sanofi have been criticized for paying dividends, and the government’s recent move to finance a new chip factory that will create jobs for 1,000 people has been rejected. Macron himself was fired this week after being investigated by the Guardian newspaper and other media outlets for helping Uber expand in France.
Opposition groups called for a crackdown on oil companies such as Oil and Total Energy, which have made significant gains since Russia’s invasion of Ukraine. Right-wing leader Marin has called on Penn to “wage war professors” to pay taxes on “super-profits.”
Although he told Myre that he wanted to wait until the end of the year to judge whether the Macron government was needed. Despite its political popularity, the windfall surplus tax “further alienates us from our political DNA, which in turn reduces taxes and supports entrepreneurs,” he said. It could also prompt executives to choose France next year twice.
leila.abboud@ft.com
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