Emmanuel Macron, re-elected as the French economy faces new headwinds, has set herself a set of ambitious goals. These are the most important economic projects of his second five-year term.
Inflation and purchasing power
The deterioration in purchasing power due to rising inflation remains the most urgent topic at the start of the five-year term.
Despite a “rate shield“Energy of more than 26 billion euros put on the table (freezing of gas and electricity prices, inflation compensation, fuel discount, etc.), the pressure on prices, especially food, is increasing.
Emmanuel Macron confirms that it is above all employment that makes it possible to improve purchasing power, but he also promises: “an exceptional purchasing power law from this summer“, in particular to increase the old-age pension. It also offers a food voucher for the most modest, an increase of “social minimumand the salary of civil servants, or even a new tax-free bonus.
Emmanuel Macron wants the “full employment“by the end of the five-year term, ie an unemployment rate between 5% and 5.5%, compared to 7.4% today.
In order to achieve this, it wants in particular to transform Pôle emploi into a “France Labour“, so as to”parts“the powers of the state and communities and to some form of”one stop shop” for job seekers, RSA beneficiaries, etc. This could lead to a merger of the involved authorities, which takes a lot of time, or simply to a better exchange of information between the actors.
He also plans to reform the vocational high school to make it “a path of excellence“according to the apprenticeship model which has boomed over the five-year period. Aid for the recruitment of apprentices, which in principle expires on June 30, will also be extended.
These projects would be accompanied by a new unemployment insurance reform, which he wants to make”stricter when too many vacancies are unfilled” and “more generous when unemployment is high“. And an adjustment to the RSA, which he wants to allocate on the condition of performing 15 or 20 hours of a “effective activity that allows insertion†
Debt and deficit
Emmanuel Macron has confirmed his ambition to bring the government deficit below 3% by 2027 and reduce the debt burden. The stakes are high, with a deficit still standing at 6.5% of GDP at the end of 2021, and government debt at 112.9% due to the Covid-19-related health crisis.
No massive spending efforts have been announced, the president-elect relies heavily on growth and full employment to generate new revenues. To finance a program whose cost he estimates at 50 billion euros, he is counting on 35 billion savings in operational costs for central government and local authorities.
The flagship measure, postponing the retirement age to 65, will only deliver savings in the medium term as it comes into effect gradually.
By proposing to further cut production taxes, notably through the abolition of the value added contribution (CVAE) for all companies, Mr Macron wants to encourage the country’s reindustrialization, which had barely been achieved during the previous five-year term. started.
Green hydrogen, electric vehicles, decarbonization of the steel industry and cement plants, but also biomedicines: the reindustrialization bet that will require huge investments, part of which will come from the France 2030 plan launched before the elections, must be articulated with the “schedule“ecologically announced by the presidential candidate between the two rounds. And a desire to promote local public purchases to the “Made in France†
But this transition creates losers and the future director will undoubtedly have to manage new complex files. There is no doubt that the difficulties of the Fonderies du Poitou or the Renault SAM subcontractor will be on the agenda during the first months of the five-year term.
Emmanuel Macron has announced his intention to restart a nuclear program with six new generation EPR2 reactors, praising in particular the climatic advantage of the electricity thus produced. In addition, the study for eight additional copies.
This multi-year project will not be completed in the five-year period. First commissioning is not expected before 2035 or 2037. But the financial stakes are immediate and significant, with an estimated cost of over €50 billion for six reactors.
The sector must also demonstrate its ability to implement such a program, following the excesses of the EPR site in Flamanville in Normandy.