French CEOs call for huge cuts to welfare charges
French business leaders are calling on Socialist President François Hollande to reduce employment charges as his popularity declines in the face of a stagnant economy and high unemployment and he searches for a pact between employers and Unions to promote business competitiveness, reports France 24.
Source : https://www.marocafrik.com/english/French-CEOs-cal...
In an open letter to the government published in Sunday newspaper Le Journal du Dimanche, the heads of some 98 private companies said that the French economy had “reached the limit of what was tolerable”.
“For companies, operating costs must be reduced by at least 30 billion euros over the next two years by cutting the employers' portion of welfare charges,” wrote the members of the French Association of Private Businesses (AFEP).
The AFEP fears that an increase in public spending accompanied by increased taxation would harm business competivity even further and they remark that their profit margins are at record lows as unemployment increased to 3 million in September which is 10 per cent of the population.The employers organisation called for a cut of 60 billion euros , 3 per cent of GDP to reduce charges on employers which could be offset by a raising VAT. This has been rejected by Finance Minister Pierre Moscovici .
An article in Le Figaro notes that although there is dialogue between the government and employers this has not increased confidence or understanding. The government is also consulting the unions and seems to be caught between the two whilst seeking greater industrial competivity andpreserving jobs at the same time. A report on French business competiveness by former head of European aerospace group EADS Louis Gallois is expected at the end of the week and many of its findings have already been leaked according to Le Figaro. A government adviser is quoted as saying that there is a feeling of "mutual distrust" and President Hollande is left to pick up the pieces,Le Figaro concludes.
“For companies, operating costs must be reduced by at least 30 billion euros over the next two years by cutting the employers' portion of welfare charges,” wrote the members of the French Association of Private Businesses (AFEP).
The AFEP fears that an increase in public spending accompanied by increased taxation would harm business competivity even further and they remark that their profit margins are at record lows as unemployment increased to 3 million in September which is 10 per cent of the population.The employers organisation called for a cut of 60 billion euros , 3 per cent of GDP to reduce charges on employers which could be offset by a raising VAT. This has been rejected by Finance Minister Pierre Moscovici .
An article in Le Figaro notes that although there is dialogue between the government and employers this has not increased confidence or understanding. The government is also consulting the unions and seems to be caught between the two whilst seeking greater industrial competivity andpreserving jobs at the same time. A report on French business competiveness by former head of European aerospace group EADS Louis Gallois is expected at the end of the week and many of its findings have already been leaked according to Le Figaro. A government adviser is quoted as saying that there is a feeling of "mutual distrust" and President Hollande is left to pick up the pieces,Le Figaro concludes.
Source : https://www.marocafrik.com/english/French-CEOs-cal...