Emmanuel Macron’s economic policies : a real break or following François Hollande’s footsteps ?

The presidential candidate and leader of the movement “En Marche!” recently explained his economic project to  the French newspaper, Les Echos.

  • About the economic crisis

France is still suffering from the economic crisis and, along with Europe, decided to establish an austerity policy instead of following the United States’ path to stimulate short-term growth. It resulted from a lack of private and public investments in the country and in Europe. France needs to put together a new model of economic growth that will address environmental and social issues.

 

  • About the European Union’s economy

Emmanuel Macron wants to create a new budget for the EU that is controlled and looked after by a Minister of Economy and Finances for the Eurozone. The minister would be democratically elected. The budget would allow the EU make the necessary investments in order to face the multiple national crises.

“Germany will be an important support for us to restore the European Union’s economy.”

 

  • About the national budget

It is important to respect France’s engagements to Europe by maintaining a deficit of 3% and forecast a slow-economic growth from 1.4% this year to 1.8% in 2022. The deficit for 2017 is predicted to be 2.9%. Macron wants to build a new model with a plan of public investments of €50 billion during his mandate and strong fiscal support for private investments.

 

  • About saving €60 billion throughout the 5 years of his mandate

Emmanuel Macron is planning on saving €25 billion from the social programmes, which includes €15 billion in healthcare and establishing a limit of 2.3% spending each year.

He is planning on saving €10 billion by reforming the employment insurance programme and by lowering unemployment to 7% in 2022. Furthermore, He is aiming to lower the public spending debt to reach the same number as the Eurozone.

Another €10 billion will be cut down from the local communities’ budget.

 

  • About taxes

The taxes include social contribution, the tax rate and other administrative taxes will be lowered by €20 billion.

The only tax that will go up will be about the environment. Emmanuel Macron is planning on creating a diesel tax on gas and raising the current carbon tax.

 

  • About unemployment

Emmanuel Macron wants to establish a universal unemployment insurance.

©PASCAL ROSSIGNOL/REUTERS
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