Among the main economic measures included in the program of the socialist candidate are: a 15% increase in the minimum wage, the creation of a climate-friendly ISF or even a “housing shield”.
Program of 70 events. Presidential candidate Anne Hidalgo presented her project for France last month. Wages, employment, taxation… An overview of the main economic proposals of who will defend the colors of the Socialist Party during the April 10 vote.
If she makes it to the Champs Elysees, Anne Hidalgo wants to “start by re-evaluating the work.” To do this, she promises to raise the minimum wage by 15%, or about 200 euros net per month, and then convene a “wage conference with employers’ organizations and trade unions.”
The current mayor of Paris also wants to reduce wage inequality by reducing the gap in companies between the lowest and highest pay to 1 in 20. Wages above this limit will no longer be tax deductible.
Still in the interest of equality, Anne Hidalgo promises to publish a list of companies that allow wage discrimination between men and women to continue and impose fines on them. This suggestion seems close to what is already being done today with the Gender Equality Index published each year, which stipulates that companies with more than 50 employees scoring less than 75 out of 100 on average could be subject to financial sanctions up to a maximum of 1% of wages. fees.
On the employment front, Anne Hidalgo plans to reverse a highly controversial UI reform that tightened conditions for access to unemployment benefits, leaving the social partners to negotiate a new system “adapted to the needs of our times.” In particular, he will have to improve “compensation for the dismissal of self-employed and unreliable workers.”
Young people over the age of 18, depending on funds, will also be able to take advantage of the “young minimum”, which will be accompanied by “guaranteed support for employment, qualifications and autonomy”. €5,000 will also be paid to all 18 year olds to fund professional and personal projects.
Anne Hidalgo also supports a measure shared by several left-wing candidates: reduced working hours. Without imposing it, the Socialist candidate says he wants to “encourage companies that want to move to reduce working hours.” The time-saving account will also be “made universal and more secure.” Finally, for young parents, Anne Hidalgo wants to take inspiration from what is being done in Spain by extending parental leave to 16 weeks (compared to 4 today), 6 of which are mandatory.
On the explosive topic of pensions, Ann Hidalgo takes the opposite view from the government, explaining that the current system “is not under threat in the short or long term.” However, unlike the most likely candidate on the left, Jean-Luc Mélenchon, the mayor of Paris does not want to lower the legal retirement age, but simply “limits” it to the current 62 years. In addition, the minimum old age and the minimum contribution will be increased to 1,000 and 1,200 euros net, respectively.
The Anne Hidalgo program is particularly focused on the ecological transition. A transition that, of course, must be financed. That’s why the Socialist candidate is proposing the creation of a climate and biodiversity wealth solidarity tax that aims to “get the most fortunate” who are regularly singled out for above-average CO2 emissions.
Anne Hidalgo, however, does not detail the contours of this new tax. He also does not specify his method of “strengthening the fight against tax evasion”, which, however, should, according to his calculations, bring an additional 6 billion euros annually to the state.
Another hot topic in the presidential campaign is inheritance rights in the Anne Hidalgo program. To facilitate the transfer, he wants to reduce the inheritance tax for 95% of the French. Conversely, he plans to increase inheritance taxes for very high estates, i.e. those “more than 2 million euros”. A measure that should bring 8 billion in additional revenue.
The proposal is in line with recommendations from the Council for Economic Analysis, which recommended in a report last December a reform of inheritance rights that would benefit the 99% of heirs, but not the top 1%. An independent body attached to Matignon expected from this overhaul between 9 and 19 billion euros of new resources.
Planned funding for the Anne Hidalgo program:
Costs (annual amount in billions of euros):
– Work: 3
– Ecology and reindustrialization: 15
– Education and youth: 14
– New Social Security: 14
– Justice, security, democracy and diplomacy: 4
Revenue (annual amount in billions of euros):
– ISF Climate and Biodiversity: 5
– Taxation of very high estates: 8
– Taxation of transnational corporations: 6
– Fight against tax evasion: 6
– Reducing environmentally harmful costs: 10
– Redirection of European Recovery Funds: 5
– Income associated with excess growth: 10
While France is recording a record trade deficit after years of deindustrialization, Anne Hidalgo wants to implement a “plan to relocate economic activity” starting with the most strategic ones. This “economic recapture” will take place through a €3 billion reindustrialization fund and will be combined with environmental ambitions through a contingency plan to reduce CO2 emissions by 50% in the industrial sector by 2035. To this should be added the creation of a booklet on industrial development through ecology, “to direct the savings of the French to industrial projects that create jobs and decarbonize our economy.”
In Anne Hidalgo’s France, state aid to companies will also be subject to compliance with social and environmental criteria. Employees should also be more actively involved in the decision-making process. To do this, companies with more than 1,000 employees must have 50% of hired directors (33% for companies with less than 1,000 employees) on boards of directors and supervisory bodies. Finally, a system of bonuses/penalties will be introduced in accordance with the share of value added that will be allocated to employees.
To develop “sustainable mobility,” Anne Hidalgo wants to create a “social leasing” system in partnership with car manufacturers and rental companies to make electric cars available to individuals “for a monthly fee lower than the cost of a gasoline-powered car.” President Hidalgo will also install one million additional electric terminals and step up assistance for the purchase of electric vehicles through the creation of an interest-free loan for sustainable mobility.
The train will also benefit from a reduced VAT rate, while air service will be subject to a “carbon footprint tax” when a “comparable rail alternative” becomes available.
At the heart of the ecological transition, energy renewal of housing will be the subject of a “grand multi-year plan” if Anna Hidalgo wins in April. A new system will be introduced to repair 760,000 private houses per year. Specifically, no expenses will be advanced at the time of operation, “reimbursement, which will depend on the level of income, will be made at the time of resale or succession.”
As in Paris, Anne Hidalgo wants to extend rent control to all the stressed areas. This supervision will depend on the energy efficiency of the premises. The Socialist candidate also wants to restart building 150,000 social housing units a year.
Among the flagship measures of her program, Anne Hidalgo also wants a “housing shield” so that no family is “forced to spend more than a third of their income on housing.” This arrangement will take the form of “a supplementary housing allowance, contingent on funds, for those who exceed this threshold despite rental and building efforts.” According to a study by France Strategie, housing (rent, fees, etc.) today accounts for 40% of tenants’ spending in the private sector and 36% of tenants’ spending in the social sector.
If Emmanuel Macron announced a program to build 6 new EPR reactors, then Anne Hidalgo, on the contrary, wants to stop the development of the nuclear industry. Believing that the atom should only be used as transitional energy, the Socialist candidate promises not to build either EPR or even small SMR reactors.
For consumers, in the context of soaring energy prices, the mayor of Paris is proposing to reduce VAT on their natural gas and electricity bills. A reduction that will also apply to fuel in the event of a sharp increase in gas station prices.
100,000. This is the number of farms that France has lost in ten years. To stop this trend, Anne Hidalgo wants to pass “a law to regulate, divide and protect agricultural land, and a ten-year plan for the renewal of generations” to help young farmers settle.
The Socialist candidate is also betting on agroecology to improve food production and provide higher rewards to producers “through reduced input costs, greater farm autonomy and increased product quality through marketing collectively controlled by producers.”
It is through agroecology that Ann Hidalgo wants to initiate a “quick” phase out of “synthetic fertilizers and pesticides,” including glyphosate and neonicotinoids, which she promises to ban within the first 100 days of his five-year term.