The economic section of Nicolas Sarkozy’s platform, with an eye on the primary election for Les Républicains and the 2017 presidential election, confirms the ultra-liberal option chosen by the former President of the Republic. Clearly, the demand for a “social dimension” advocated by Christian Estrosi for his support was not heard, and even less retained…
The 35-hour workweek is over, overtime re-taxed
The former President of the Republic could not avoid the debate that has opposed, for years, Pierre Gattaz, president of MEDEF, and François Hollande’s government: the 35-hour workweek. For Nicolas Sarkozy, it’s simple: it is “the greatest economic mistake” made in France since World War II. So, he has a solution: to abolish it. “There will be no single weekly working hours. Each company will henceforth have the right to freely determine the working hours of its employees, and thus the point at which normal hours become overtime,” he writes in his program book.
But contrary to MEDEF, which hopes for 39 hours paid as 35, Nicolas Sarkozy aims for fully paid hours: “it will therefore be 35 hours paid 35, 36 paid 36, 37 paid 37…” a way to have everyone agree.
Then, when overtime is worked, it will once again be tax-exempt. A measure that had been put in place during his term under the slogan “Work more to earn more” and was abolished by his successor.
No more wealth tax and a 10% “immediate” tax cut
In terms of taxation, Nicolas Sarkozy does not stray from his affection for the ultra-rich: he simply wants to abolish the ISF (Wealth Tax) paid by the wealthiest in France, which nonetheless brings in 4.5 billion euros per year to the State. According to him, however, this tax is incompatible with Europe since French fortunes can easily move elsewhere (examples abound).
But if the wealthiest will be favored, the ex-President wants to cast a wide net. He also plans an “immediate tax cut, starting in July 2017, of 10% on income tax.” A response to the tax fatigue of the French, which again risks creating a hole in the budget. Not to mention the removal of inheritance taxes for the middle class, up to an amount of 400,000 euros.
Decreasing unemployment benefits and retirement at 64
Another issue facing the future President: unemployment, which has started to rise again, and retirement. Nicolas Sarkozy has a firm opinion on the matter.
To incentivize the unemployed to return to work, he considers implementing decreasing unemployment benefits: -20% of the indemnity after one year, another -20% after a year and a half. Long-term unemployed individuals will thus be penalized. But the former President has another project: “substituting existing aid (RSA, housing aid, activity bonus) with a single aid with two essential characteristics, conditioned on resuming an activity or training, capped at 75% of the minimum wage (SMIC).”
Future retirees, on their part, will have to adapt: the legal retirement age will be pushed back: 63 years in 2020, 64 years in 2025.
Companies will be favored
Nicolas Sarkozy offers a gift to Medef. Business transfers will be “exempted by 85%, or even completely” under conditions of employment and activity maintenance.
But it is on wages that the former President wants to make an impact. “Total exemption of charges at the minimum wage (SMIC) level, which would decrease and progressively cancel out at 1.6 times the SMIC,” doubling the amounts devoted to the CICE, economic layoff justified “solely by reorganization reasons”…
