MIL-OSI Translation: Economic and social emergency: Prime Minister details measures in favor of purchasing power

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MIL OSI Translation. Government of the Republic of France statements from English to French –

Bonus activity, CSG, overtime … In an interview with the newspaper Les Echos, the Prime Minister detailed measures announced Monday, December 10 by the President of the Republic.

In his “address to the Nation” on December 10, the President of the Republic made a series of announcements. The Prime Minister detailed their implementation in an interview given to the newspaper Les Echos on December 17. He recalled that “there is no turning point, there is a change of method, the goal is to create more wealth, reduce the cost of labor, be more competitive, keep our accounts public. ” The context of “economic and social urgency” marks the need not to stand still. Thus, the will of the Government to transform and modernize the country remains unchanged.

The Government will accelerate measures that increase the purchasing power of the French while retaining those that improve the competitiveness of businesses. This is why the CICE rocker down charges will not be reviewed. “Lowering the cost of labor while increasing purchasing power is essential for our country,” said the Prime Minister.

A bill will be tabled on the office of the National Assembly Wednesday, December 19. If Parliament wishes, everything can be voted before Christmas.

Measures

Exceptional bonus

Totally tax free (taxes, social security, CSG-CRDS), up to 1,000 euros, for employees who earn less than three times the smic.
Paid freely by the company in simple and readable conditions.

Overtime

Tax exemption, in addition to a withdrawal of contributions, so that the impact on the purchasing power of employees is maximum.
The gain will rise to 400 € / year on average.

100 euros net

The commitment of the President goes through a massive increase in the activity premium, which allows to go quickly. Edouard Philippe recalled that “this is the proposal of the Government but we will naturally debate in Parliament.At term, it is also necessary to work to make this activity bonus more readable and more automatic.”
As of February 5, 2019, the premium will be paid to supplement the salary of January and thus achieve the increase of 100 euros.
It is a measure of social justice that takes into account all household income.
Using the activity bonus also makes it possible to include the self-employed and civil servants whose pay is close to the minimum wage.
A decline in employee contributions would be less fair and, as such, has already been censored by the Constitutional Council.

The number of eligible households will increase from 3.8 million to 5 million. “Our goal is to increase the purchasing power of middle-class households and in this context, taking all income into account is a matter of social justice.”
All single employees without children will have 100 euros more up to 1,560 euros net of income.
With a child, a single mother will receive the bonus up to 2,000 euros salary.
A couple (one wins Smic and the other 1,750 euros) with two children will see his income increase 200 euros.

CSG / retired

In the previous device, 60% of retirees were affected by the increase in CSG.
From now on, only 30% of pensioners are affected by this increase.

Funding Measures

The measures announced by the President will cost around 10 billion euros. The prime minister did not hide the fact that the government assumes “a slight increase in the deficit.” But we are paying attention to public accounts, and we are taking a series of measures, on business and on spending, of the order of 4 billion . “

The deficit announced for 2019 was 2.8% (actually 1.9% of GDP if we subtract the exceptional cost of the transformation of the CICE into lower expenses). With these new measures, the deficit will be around 3.2%.

Regarding the corporate tax (25% commitment in 2022), the rate was to increase from 33% to 31% in 2019. This decline will ultimately affect only companies with less than 250 million euros in turnover. The revenue will be 1.8 billion euros for the state.

A tax on GAFA will be put in place in 2019 pending the European tax. This will bring in 500 million euros in revenue.

Finally, the revision of the “Couche niche” on corporate intra-group transactions should bring in 200 million euros.

The Government is engaging with parliamentarians in an effort to control spending. Objective: 1 to 1.5 billion euros in savings as part of the implementation of the 2019 budget.

Announcements and clarifications

The head of government also said that the government team will continue “to modernize the country with reforms as important as unemployment insurance, the civil service and pensions.”

He also spoke about the taxation of the revenues of CAC40 leaders. Parliament will get to grips with this quickly because “when you head a large company headquartered in France, you have to pay taxes in France.”

The elimination of wealth tax has helped to improve the attractiveness of France. “Foreign investment in France has increased, France will take advantage of Brexit.” No reverse will be done regarding the ISF.

The Prime Minister also spoke on the referendum. According to him, it is “maybe a good instrument in a democracy, but not on any subject or in any conditions, it is a good subject of debate, as is the white vote.”

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

MIL Translation OSI

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