No course changes. In front of the bosses gathered at the Longchamp racecourse for the great return to Medef, the executive showed himself on Monday in seduction mode. After Emmanuel Macron, in a recorded video, asked businessmen to join his economic policy, it was the head of government who insisted on the same “pro-business” message.
Cooled by the new schedule for the abolition of the CVAE, a tax on production that still subtracts 4,000 million euros from the operating accounts of companies, the businessmen who were hesitant may have reassured themselves with the demonstrated will of Elisabeth Borne.
“There will be no tax increases”, especially for companies, he assured to immediately respond to criticism. After a first term of five years marked by the reduction of the corporate tax rate, the reduction of taxes on production, the introduction of a single tax on capital income or the transformation of the ISF into an IFI, the Prime Minister Minister insisted on making it known for convincing his audience that he believed in this policy.
“If we can, we will speed up”
Invited to BFM Business, she even slightly opened the door to a possible early abolition of the CVAE. Initially scheduled for 2023, then postponed for two years, the final end of this production tax is now scheduled for 2027.
With expected growth of 1% for this year in a context of high inflation and rising interest rates, the Government’s priority is to limit public spending to respect the budget path that foresees a deficit of less than 3% of GDP in the 2027 horizon.
For the government, too massive a tax cut would send the wrong signal to the markets, which could penalize the country by increasing the cost of money.
Prospects and promotions.
However, it is a message of optimism that the person who was confirmed in her duties last July by the Head of State wanted to convey. Hailing the good results of the French economy, he hopes that the French will benefit more from the fruits of this good health.
According to her, companies have a leading role to play so that the French “can have prospects for promotion and social advancement”.
Source: BFM TV
