He was expected around the corner. After the announcement of the public deficit for 2023, estimated by INSEE at 5.5% of GDP, a figure well beyond the executive's initial forecasts, Prime Minister Gabriel Attal came on Wednesday evening to
"8 p.m. »
from TF1. Thirty minutes to reveal the government's decisions aimed at restoring public finances and work. A speech all the more scrutinized as the country has embarked on the path of
“rigor”
, in the words of the host of Matignon on Tuesday, in order to restore the state accounts by 2027 In this regard, the government is laying its cards on the table. And is looking for savings.
If the executive
steadfastly
excludes increasing taxes, ten billion euros of cuts have already been made a month ago in the 2024 budget. Other savings are planned this year, and at least 20 billion euros will be found for
2025. After
a government seminar devoted to
work
in Matignon, Gabriel Attal
reiterated
Wednesday afternoon on
".
In the government's sights: the reform of unemployment insurance for which the social partners are still under discussion.
Deficit:
“No slippage in state spending”
After the public deficit figures revealed this week by INSEE, the Prime Minister described the situation as
“serious”
.
“There has been no
slippage
in state spending. We are even a little below, 8 billion euros less than what was planned for expenditure. On the other hand, we had less revenue than expected,”
admitted Gabriel Attal on TF1. A gap linked, according to the head of government, to a
“European economic slowdown”.
The opportunity to recall that no budget has been voted in surplus since 1974. And to praise Emmanuel Macron's record in this area: France experienced a public deficit below 3% of GDP in 2017 and 2018 before the health crisis of 2020-2021.
“We maintain the objective of falling below the 3% deficit in 2027. What is important for the French is above all to tell them why. Because when you are below 3%, that means that you are starting to repay your debt
,” the Prime Minister also recalled. And to spin the metaphor:
“The subject is to get France out of debt because a country that is over-indebted is not a free country. It's like for households, if you are over-indebted, you spend all your money to repay your debt. You can no longer invest, make plans for the future.”
No tax increases for the middle classes and businesses
Asked about a possible increase in taxation to reduce the public deficit and increase revenue, Gabriel Attal hammered it home:
“We have always said that we would not increase taxes”.
Before drawing two red lines. First,
“do not increase taxes on the middle classes”.
Then,
“do not increase taxes for (...) businesses.”
Gabriel Attal may well not brush aside the idea of a tax on the richest, as the President of the National Assembly Yaël Braun-Pivet had proposed, the tenant of Matignon is waiting
“for proposals to be made to him”
on this file.
To counter this stability of taxes, the head of government wants to encourage the unemployed to return to employment.
“Either you increase taxes, or you ensure that there are even more people working to have additional revenue
,” explained the Prime Minister. Who thunders his objective
of “achieving full employment”
by 2027.
Unemployment insurance: a reduction in the duration of compensation
“by several months”
Wednesday evening, Gabriel Attal also announced that
“there will be a reform of
unemployment insurance
this year”.
Given this desire, he asked Labor Minister Catherine Vautrin to
“prepare new negotiations”
for a
“real, more global reform”. “My objective is not to attack a particular individual or the unemployed, it is to move a system to encourage more people to return to work,”
explained Gabriel Attal
. “There are several parameters: first, the duration of unemployment insurance compensation. Today is 18 months. One of the options is to reduce this duration by several months, it must not go below 12 months
,” detailed the head of government.
“The second option is the time you must have worked to benefit from unemployment insurance. Today, it's six months of work over two years. One option is to work more over this same period or reduce the period
,” he added. The third hypothesis is the level of unemployment compensation.
“It’s this last track that I prefer,”
argued Gabriel Attal. Which
“wants the parameters to be presented this summer, for a reform in the fall
,” he also declared.
Read alsoUnemployment insurance: the executive's options for saving money
“We have to get out of the shackles of 35 hours a week”
Totem of a world of work since 2000, the 35-hour week has undergone several adjustments since its establishment without being completely eliminated. Asked about a potential four-day work week, Gabriel Attal assured that he was not in favor of a reduction in
“working hours”.
However, he wants experiments in more companies.
“We have to get out of this straitjacket of 35 hours a week. There are public officials who say they want to work their hours but over four days rather than five. This would reduce the inequality between French people who can telework and those who cannot. I want us to give these freedoms and these flexibilities
,” urged the Prime Minister.
“We must also improve working conditions
,” also asked Gabriel Attal. Who will bring together the social partners on this issue.
“Reductions in contributions”
planned to
“further encourage the increase”
of low salaries
The Prime Minister also wants to review the contribution reduction system
“to further encourage employees to increase their salary”
.
“We have entrusted a mission to two economists, who must make proposals to us on the subject in June
,” indicated Gabriel Attal.