- Emmanuel Macron made several announcements on the purchasing power on Thursday evening during his press conference at the Elysee.
- In particular, he promised to lower income taxes and re-index pensions to inflation.
- These new measures should also be accompanied by a reduction in public spending, so that the equation looks complicated.
Last year, Emmanuel Macron was not an absolute fan of purchasing power. "Of course, I am sensitive to the problem of purchasing power. But I, I did not engage on it "affirmed it in September 2018, according to the JDD, forgetting in the passage its promises of 2017. But that was before. The "yellow vests" went through there and forced him to draw 10 billion euros from "
emergency measures "last December. Thursday night,
during his press conference against journalists, the head of state once again announced several measures for the portfolio of the French. But who is really concerned?
If you are an employee. Emmanuel Macron promised that income tax – currently paid
by 43% of tax households – was going down. That was the main recommendation made by the majority members. While asserting that it would be the government to precisely define the amount of this tax reduction, the head of state estimated that a decline of "5 billion euros" would be "a significant gesture".
It remains to be seen who will benefit from this gesture. Interviewed by France Info on April 9, the Minister of the Economy, Bruno Le Maire, said that the decline should initially concern "those with the lowest income levels." The executive will have to define this famous threshold, knowing that the more taxpayers will benefit from the boost, the more this tax reduction will be diluted.
If you are retired. Two weeks ago, retirees paraded in the streets to denounce
the "theft" of their pensions. The government had decided not to index them to inflation in 2019, which translated automatically
by a loss of purchasing power. Thursday night, Emmanuel Macron returned to this policy: pensions below 2,000 euros will be reindexed in 2020. According to
an estimate of the OFCE published last month, this would result in an annual gain of 50 to 250 euros for the households concerned. Pensions higher than 2,000 euros will be reindexed in 2021.
In addition to this measure, the Head of State promised a minimum pension of 1,000 euros "when we worked [et donc cotisé] " during his life. An amount slightly above the minimum old age, which will reach 903 euros per month in 2020.
If you are a single parent. In his speech on Thursday evening, Emmanuel Macron repeated several times that it was better to take into account single-parent families, especially single mothers. He announced that the family allowance funds would see their power strengthened "to levy family support". "We can not rely on mothers incivility of their former spouses," said the President of the Republic. According to estimates,
35% of the alimony would not be paid in France.
And now, the addition
Obviously, all the measures listed above will have a cost for public finances: tax cuts, pensions … and even alimony. "Even if these are not a state expense, it will be necessary to give additional resources to CAF so that they can be effective in their recovery," said Pierre Madec, an economist at the OFCE.
In total, the bill should therefore be in billions of euros. To which are added the 10 billion euros announced in December. "The way all this will be financed lacks details, continues Pierre Madec, it is not clear". Especially since the government promised he did not want to let the debt slip. In this scheme, it is public spending that should be reduced … without necessarily removing thousands of civil service posts, since Emmanuel Macron said he wanted more "on the ground". The equation promises to be complicated to solve.