“We have no intention of increasing VAT”

The Economy Minister described Nupes’ allegations about a possible rise in VAT by the current government as “delirium” to reduce the public deficit.

Bruno Le Maire on offense. On BFMTV, the Minister of Economy and Finance, campaigning for the legislative elections of his political family, wanted to clarify the issue of the VAT increase raised by Nupes’ representatives for a few days.

This Sunday, during his election night speech, Jean-Luc Mélenchon spoke of “the hidden part of his program […] that is to say, the 80,000 million that they intended to take out of the State budget”. Before insinuating that the presidential program could be financed with a “VAT increase.”

An assertion taken up on Sunday by certain spokesmen for the Nupes and that caused a stir within the Government itself. Starting with Bruno Le Maire, who is presented this Tuesday on BFMTV as “the finance minister who has lowered taxes the most in two decades in France.”

“It’s a conspiracy”

“When I hear the Nupes and some of their representatives say that we intend to increase VAT, I want to deny with the utmost firmness this invention, this delusion of our opponents, annoying Bruno Le Maire. We have no intention of increasing VAT rates. .”

Highlighting that the tax cuts had reached 52,000 million euros compared to the previous five-year period, the Economy Minister recalled that Emmanuel Macron’s program included new cuts for the second five-year period.

“Our DNA is to lower taxes, their DNA is to raise taxes,” the Economy Minister attacked. I find that these types of comments resemble what is a trait of his in-laws: conspiracy. Making believe that there are hidden things, what power, that the powerful would hide from the French people. There are millions of our compatriots who are within 1 euro so play on their fear and make them believe that the government would have a hidden plan to increase VAT, it seems disgusting to me, I I find it sad, I find it unworthy.

However, the Head of State had estimated the cost of his program at €50 billion during the presidential campaign, including €15 billion in tax cuts and €35 ​​billion in new spending. At the same time, he assured that he wants to bring the public deficit below 3% of GDP by 2027 (6.5% in 2021 and 5% in 2022).

An increase in spending and an objective of reducing deficits that the Minister of Economy does not consider contradictory.

“To achieve this, we are carrying out structural reforms, we are committed to continuing to transform the labor market and we are undertaking a pension reform so that everyone works longer in France, recalls Bruno Le Maire. […] The most important answer is full employment, the most efficient and fair answer. On the day that France will be at full employment for the first time in half a century, you will have solved a lot of problems in France.

The unemployment rate is currently 7.3% of the active population according to INSEE. To achieve the full employment desired by the Minister of Economy, this rate should be reduced to 5% or less.