The French Prime minister Edouard Philippe was dismissed Monday, may 25, new tax cuts for businesses before 2020, citing “an environment constrained” in terms of budget and the need for prior consultation with the local communities.
“We are in a restricted environment. As of the margin of manoeuvre of this engagement, we will commit ourselves to reduce in a certain proportion to the taxation of production”, said the Prime minister, saying, however, do not believe that it could be included as the finance act of 2019.
The other constraint, “it is the discussion with the local communities on the effects that could result from the reduction of the taxation of production on their situation,” pointed out Edouard Philippe during a press conference at Matignon after a meeting of the national Council of the industry.
Decrease of 1.5 billion euros
Taxes on production are taxes borne by the companies regardless of the amount or value of the goods and services they produce or sell, for example on the land. Overall, they are higher in France than in other european countries such as Germany or Italy.
A reduction next year of taxes on production is already planned by the future law Covenant for the growth of businesses, in particular by eliminating the threshold of 20 employees which triggers new social obligations and business tax. All of the measures already planned will reduce the tax of production of around 1.5 billion euros by the end of the quinquennium”, recalled on Monday, Mr. Philippe.
As a result of these efforts, the industry representatives present on Monday at the prime minister’s office have not made the fine mouth. “There is an overall satisfaction (among the industrial, ED.), the subject of taxes of production is taken into account at the top of the State,” said Philippe Darmayan, president of the Union of industries and crafts of metallurgy (UIMM) and ArcelorMittal France, questioned by the AFP. “We understand that it is not easy to go further in the immediate future, and we can manage the time,” he estimated. “The Prime minister has left the door open for the years to come,” also has preferred to retain Bruno Grandjean, president of the Alliance industry of the future.
On the training component, Edouard Philippe has released the release of 670 million euros to allow 148.700 entered into training as soon as this year, particularly in trades where the industry is struggling to recruit: boilermakers, machinists, mécatroniciens or even electronics. “It is said that 40% of the recruitment industry are thought to be difficult due to a lack of manpower. This is a line considerably to the economic recovery the French, the French competitiveness, it is also something that is shocking given the level of unemployment in France”, said Mr Philip. “It is urgent”, he insisted.
This funding is part of the framework of the programme of investment in skills (PIC), announced last fall, and with € 15 billion over 5 years. “A few times just a few tens of hours, 100 hours of training and has a job at the end”, told AFP the minister of Labour, Muriel Pénicaud, at the output of Matignon. “In the industry it seeks a lot of world. This has not been the case over the last fifteen years, but today it is gone again”, and this current skills shortage targeted “limit the growth” of many small and medium-sized enterprises, she recalled.