A reform that would save EUR 7 billion per year

The report of the Court of Auditors on the exemptions from contributions, the content was published yesterday by "Les Echos", brings water to the mill of the majority parliamentarians opposed to the project of complete removal of the social costs at the level of the minimum wage. While acknowledging that the policy of exemption from employer charges on low salaries in 1993 had "a certain efficiency in terms of the net increase of non-skilled jobs", the Court is critical to a costly strategy for public finances (EUR 19.8 billion in 2005), driving in a rather haphazard manner and which has not benefited to sectors that she should help. For example, she notes that "manufacturing industries directly exposed to international competition and the risk of relocation have little benefited from exemptions".

Sponsor of this report, Pierre Méhaignerie (UMP), President of the National Assembly Finance Committee, makes a nuanced reading. "With relief of employer contributions, we created a competitive capacity, particularly in services, he says." This policy has produced results, but given that the community is dedicated today some 20 billion euros and even 23.6 billion euros this year, according to the forecasts of the Commission on the social security accounts, which is a maximum, the time has come to take a break and ask what the best solutions for the future. "For this close to Nicolas Sarkozy, is therefore"not appropriate to initiate the deletion of 2.1 points of employer social contributions remaining at the level of the minimum wage. "

"Better to do".

On 14 July, the head of State had implicitly restarted his promise of a minimum wage with "zero charge". Outside the Prime Minister, who confirmed the presidential commitment this summer, this perspective found little support to the Government and in the majority. The Minister of employment and social cohesion, Jean-Louis Borloo, is fiercely hostile, while the Ministry of economy and finance is not even hear, lest they face the extent (EUR 1.4 billion) by fiscal surpluses.

"The Court of Auditors report strengthens the idea that this is not much, if not to implement a presidential promise", said Liberal MP Hervé Novelli (UMP). It is "the meaning" to one of the advanced by the Court, which is to bring the output of the exemptions from 1.6 minimum wage threshold 1.3 minimum wage. A reform that would save EUR 7 billion per year. Author of a proposal for legislation introduced before the summer to zero-rated overtime for companies as for employees (by suppression of wage costs on the "hours Sub"), which would allow of "restore purchasing power", Hervé Novelli j. "there better to do" to remove the last loads on the minimum wage.

"A commitment".

Another liberal majority, the UMP Hervé Mariton is one of the few to support this view. "He must go after the exemption on the minimum wage because it is a commitment to business, which can more perpetual roundtrips.". "But we must give these exemptions better visibility, so greater efficiency, transforming them directly into deductions on contributions", offers this close to Dominique de Villepin, who is also spokesman for the Group UMP in the National Assembly on budgetary issues.