The main points of Macron's economic programme

· The law sets the work week in France at 35 hours, even if in reality it is often higher. Macron wants to keep 35 hours as the legal reference, but give businesses and trade unions greater ability to negotiate special arrangements.To combat unemployment, which remains just under 10%, Macron wants to step up training schemes. His programme calls for training one million youths and one million low-skilled job seekers.· Macron's programme wants to reduce the corporation tax to 25%, the European average, from its current rate of 33.3%. France's social welfare system is financed primarily by labour charges, which Macron wants to reduce for low-wage workers. Some public aid to companies would be transformed into lower charges to companies.The idea is that companies would use the funds freed up to invest and hire, rather than paying out additional profits as dividends.· Macron wants to cut 120 000 public jobs and reduce state spending by 60 billion euros (US$65.7 billion) over five years.Public spending accounts for more than half of the French economy - it weighed in at 57% in 2015, according to OECD - which is considerably higher than the United States at 37.7%, Britain at 42.8% and Germany at 44%.Over his five-year term, Macron aims to reduce the figure by three percentage points from its level of 55% in 2016.· A 50-billion-euro investment programme would target different sectors like green energy, training, transportation, and agriculture, among others.Macron's programme aims to take advantage of the historically low interest rates in Europe to borrow the funds needed to invest. Given that interest rates are lower than the growth rate, the programme argues that the increased borrowing won't lead to a debt trap.Given France's high level of debt and the likelihood ultra-low interest rates won't last for much longer, there is a fair degree of uncertainty about this proposal.· Macron still aims to reduce France's public debt, to 93.2% of annual economic output in 2022 from 96% in 2016. He also aims to cut the public deficit to 1% of output. It was 3.4% in 2016 - in breach of the 3% percent EU limit - but should drop to 2.8% this year. – Nampa/AFP

The main points of Macron's economic programme

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Republikein 2026-07-07

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The main points of Macron's economic programme

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