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The idea of ​​employee savings back on track

Besides the exemptions or deferrals of social contributions proposed by the government of France to come to the aid of the most affected economic sectors, Gérald Darmanin, the Minister of Action and Public Accounts has expressed the idea of ​​relaunching the employee shareholding.

Besides the exemptions or deferrals of social contributions proposed by the government of France to come to the aid of the most affected economic sectors, Gérald Darmanin, the Minister of Action and Public Accounts has expressed the idea of ​​relaunching the employee shareholding.

(JFC, with AFP) – Sketching ways out of the crisis, Gérald Darmanin, Minister of Action and Public Accounts exposed this weekend in a personal capacity a proposal for the post-crisis: “generalize” and “extend employee share ownership, by paying employees large amounts, and no longer symbolic ”, as he indicated in an interview with Sunday newspaper. Such a generalization of profit-sharing and salary participation for all companies is “an old idea of ​​General de Gaulle (…) which reconciles working capital”, he adds. This way out of the crisis consists in “trusting economic players and growth creates the wealth that makes it possible to repay this debt”.

At present, participation is compulsory in companies with more than 50 employees and profit-sharing is not. It is also possible to change the premium ceiling, which is currently set at 20% of gross salary. A further reduction in the social security rate could be envisaged. Gérald Darmanin must respond to calls for higher wages, in a crisis situation, where the executive seeks above all to preserve the competitiveness of businesses.

In this perspective, the French government intends to exempt social security contributions from companies in sectors particularly affected by the consequences of the covid-19 epidemic. “These tax exemptions represent three billion euros and will affect nearly 500,000 companies,” said the minister. This measure will apply “in the tourism, arts and entertainment, catering, hospitality, culture, sport” sectors, he said. Outside of these sectors, companies having seen their social contributions deferred will be able to spread their payment over a period of up to 36 months, he added.

Since the start of the economic storm caused by the new coronavirus health crisis, the government has stepped up measures to try to help businesses get over it. Solidarity funds, state guaranteed loans, partial unemployment: in total, the executive has deployed € 450 billion in state aid and guarantees, according to the Minister of Economy Bruno Le Maire.

We chose the debt, which is worrying, against the bankruptcy which would have been disastrous

But all these measures will have a cost and the French debt will “probably” exceed the threshold of 115% of gross domestic product, warned Gérald Darmanin. The minister, however, declined to give a more precise estimate: “These are too important things to be able to comment with a wet finger,” he said.

“Debt is both the expenses we make, and we make a lot of them, and the revenues we don’t have. In this crisis there is a kind of scissor effect, you spend more and you have less tax revenue because there is less activity ”, he explained again. “What is certain is that we chose debt, which is worrying, against bankruptcy that would have been disastrous,” added Mr. Darmanin.


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