Differences in Taxation Strategies: Potential Disagreement Between Antoine Armand and Michel Barnier?
In an exclusive chat with Le Parisien, Economy Minister, Antoine Armand, sent a firm message to Prime Minister Michel Barnier about business taxes: "Hold the brakes on excessive taxation – businesses should not be the adjustment variable."
© Nathan Laine/Bloomberg/Getty Images By Xavier MartinageUpdated on
Is there friction brewing between Michel Barnier and certain ministers? On Wednesday, November 20, Antoine Armand, Bercy's occupant, made waves in an interview with Le Parisien. With the 2025 Budget discussions ongoing, Armand didn't shy away from putting pressure on Barnier, particularly on the business tax front.
On Wednesday, the Senate scrutinized an essential article of the Social Security Funding Bill (PLFSS): the overhaul of the social security contribution exemption system. Right-wing and centrist senators withdrew the increase in labor costs on salaries around the minimum wage and capped social security contribution exemptions on higher remunerations. The initial aim was to regain €4 billion, but Antoine Armand warned Le Parisien: "Tread softly on taxes – businesses should not bear the burden." He also added, "It's by relieving businesses and lowering labor costs, instead, that we ignite job creation and growth."
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"A balanced and responsible interview" for Gabriel Attal
A former member of the majority, Armand reiterated his party's stance and didn't mince words when expressing his disagreement on the matter with the Prime Minister. Although he is "Michel Barnier's minister," Antoine Armand highlights that he represents the EPR group but, most importantly, a "coalition." And he persists "Political factions that don't toe the same line work together." He also told our colleagues that his group is correct: "We must go as far as possible to preserve social security contribution exemptions."
Under fire, the plans to boost mobility contributions that could cost businesses an additional €1 billion in 2025. Regardless, Antoine Armand brushes off "any pseudo-blackmail of resignation" and recalls that the Prime Minister "[always] welcomes adjustments in exchange for economy proposals." How? Perhaps by tightening unemployment insurance conditions, a proposal the EPR group had previously suggested.
"The Prime Minister avoids sterile disputes"
The Bercy occupant also expressed interest in discussing "the standard of living of the state" and health transport, which costs €3 billion annually to Social Security. This statement was lauded by former Prime Minister Gabriel Attal. On social network X, he praised "a balanced and responsible interview" and reminded the former majority continued to "defend the competitiveness of our economy for the sake of employment."
Reached by Le Parisien journalists on Thursday, Matignon merely commented "each one will be the judge," but also that "facing headwinds, the Prime Minister maintains his course and does not fall into sterile controversies." A closed-door meeting between the two men is arranged for the afternoon.
- Antoine Armand, the Economy Minister, urged Prime Minister Michel Barnier to be cautious with business taxes, stating, "Tread softly on taxes - businesses should not bear the burden."
- In a disagreement with Prime Minister Michel Barnier, Antoine Armand, even as the Economy Minister, emphasized the importance of preserving business tax incentives, saying, "We must go as far as possible to preserve social security contribution exemptions."
