"Yellow gilet": the tone rises between the government and the companies - Le Figaro

The executive, which requires strong commitments from companies to increase purchasing power, also plans to recover from them the 4 billion euros that will skip next year to complete its budget. The CICE is in the crosshairs. Medef sees red.

Is the government still "pro-business"? The employers' organizations doubt it. They believe that the executive is trying to make them wear their hats in the context of the "yellow jackets" crisis. "We are making companies the scapegoat of this tax revolt I do not want the revolt to turn into an accusation of the companies that do their job, the problem is not in the companies that arises, it's a tax problem," said the president of Medef Geoffroy Roux de Bézieux this morning on Inter France.

The head of the chiefs was particularly sympathetic to the fact that the companies made a gesture to increase the purchasing power of the employees but within reasonable limits. Therefore, the tax-free premium that the government wishes to favor must remain optional. "The simple system that says 'give a gesture' is a good idea, but does not complicate the subject," he warns. Employers do not even consider the intention declared by the government to "examine all measures to increase wage levels at smic level". "There is a problem of purchasing power, I hear calls to increase wages, but the problem is taxes, taxes," recalls Geoffroy Roux de Bezieux.

»READ ALSO – Purchasing power: companies in the executive press to make an effort

A speech swept by Muriel Pénicaud. The minister of labor, who spoke this morning on BFM Business, said that "we are in an absolute social emergency and therefore economic urgency, companies have to do their part, everyone can do something so everyone has to do something. leaders should give the example. "According to her," we should not oppose competitiveness and purchasing power of employees.When growth is there, it must be inclusive. "The Minister of Labor intended to deliver the message in a meeting this morning with employers and unions.

Return to the CICE

Beyond the purchasing power, the tone is raised between the government and employers on how to recover the 4 billion euros that will not enter the budget due to the removal of taxes on fuel. second Les Echos, the executive intends to recover them in the pockets of companies. Several options would be on the table. Among these, the possibility of taking a break next year on the path of lowering the corporate tax rate. The latter was to increase from 33% to 31% in 2019 with a final target of 25% in 2022. Another option: return to the CICE transformation in permanent cost reductions, the cost of which is estimated at 20 billions of euros for public finances. This last option positively resonates with the ear of the executive, which tries to keep its public deficit below 3% by any means. As the European Commissioner for Economic Affairs Pierre Moscovici reminded us yesterday, this transformation of the CICE, registered in the PLFSS of 2019 voted on Monday, represents 0.9 points of GDP. Without it, France's underlying deficit would be 1.9% of GDP next year.

Unacceptable according to Medef, who calls on the government to save money by reducing public spending instead of turning to businesses to bridge the gap. "Business does not show, it does not stop roundabouts, it stops creating jobs, and unemployment would start if we did," he warns.

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