The French National Assembly Adopted a Historic Cut in Spending

With iron hand without kid gloves, appealing to the legitimacy of government and the responsibility and the international credibility of the second power of the euro zone, the French Prime Minister, Manuel Valls, defended, this Tuesday April 29, 2014, the biggest cuts in public spending modern French history to a divided National Assembly and the Socialist Party (PS) fractured. Finally, he pushed through a vote of 265 yeas against 232 nays and 41 abstentions in the ranks of PS.

Valls presented the triennial Stability Program Paris demanded by the European Commission to reduce France’s deficit as a must for employment “sovereign decision”, improve the competitiveness of enterprises, grow again, reduce the deficit – “we asphyxia”, emphasized, and ensure “social justice and the purchasing power of the weak.”

“We can not live longer beyond our means,” proclaimed Valls, who asked vehemently symbolic support of the Socialist government deputies, overwhelmed by internal dissent, ruled that the vote was non-binding, asking them ” consistency, courage and responsibility. “

The prime minister took an almost apocalyptic tone to call a most devastated by the defeat in the recent municipal to close ranks: “It’s not about any one vote is a decisive vote that profoundly marked the evolution of this country. The result determines both the legitimacy of the government, their ability to govern and, above all, the credibility of France.”

Valls was cheered by the bench at the end of most of his speech. He denied that the snip of 50,000 million in the period 2014-2017 will be ” austerity plan “; stated that the priority remains investing in education and creating youth employment; added that the drop in 30,000 million of tax and labor burdens on companies ” should serve ” to create jobs, but did not specify how much, when and how, “and not to increase dividends and salaries of managers ” – and encouraged unions and the “people’s representatives ” to monitor the employer fulfills his part.

The prime minister sought to give social varnish neoliberal policies embraced by François Hollande in January when it announced massive spending cuts and the MEDEF employers offered a covenant of responsibility without any compensating president later tried to make a pact solidarity: ” the wealth is created businesses and jobs, too,” Valls said, recalling that France has lost tens of thousands of jobs in recent years, today 3.6 billion people do not engage in any activity – and it is necessary to ” reduce the competitive disadvantage between France and Germany.”

“The drop in labor costs will intensify. Zero charges for workers earning the minimum wage from January 1, 2015 is an important incentive for entrepreneurs, “said Valls, who acknowledged that the pact has generated ” doubts ” among political groups, including the socialist, but defended fiscal adjustment ” is just, well distributed, and it is not hard nor soft, but calibrated to ensure economic recovery.”

Then promised that Hollande will require from June in Brussels a new monetary and investment to stimulate employment and ” reduce the high price of euro” policy, and justified the measures with some real issues: ” 40 years ago we spent over what we produce. Debt costs us 45,000 million per year. We remoloneado to take the measures needed to take. Never was time to do it. “

” France is a great country,” said Valls resorting to the infallible words of grandeur. ” But it must ensure its financial independence and sovereignty, ie, not dependent on financial markets and do not regret the debt on future generations.” France now pays about 2 % for financing its sovereign debt, the lowest number in decades. But dragging a bale of public debt equivalent to 96 % of GDP.

” In these years we have collectively depleted. And the French can no more tax increases,”also said the former Minister of the Interior, which prevented remember that the setting includes a further tax increase worth 10,000 million euros for taxpayers who pay income tax.

The stability program undertaken by the Government in Brussels 18.000 million reduced state spending and 11.000 billion in the lifestyle of local and regional bodies. In addition, it will cut 10,000 million and 11,000 million in health more other benefits. But Valls became the answer to the Socialists to the settings to opportunity and personal merit. He boasted of having established a new method of dialogue with parliament, and threw the concessions made to the socialist majority after the pulse lived unprecedented in recent weeks between the head of government and more than a hundred of the 291 MPs PS.

The prime minister cited the increased average bonus -440 euros gross per year – for officials earning the minimum wage from 2015 and updated with the CPI of social aid and pensions of less than 1,200 euros from autumn this year. As stated by the opposition, the increased pay will mean no effect, because sufferers have fewer benefits and pay more income tax.

The cuts will play in the next two and a half years to 6.6 million public employees and nearly 15 million pensioners. Most state pay will be frozen for a year. Salaries of officials – frozen since 2010 -, pensions and family allowances and housing will only update the October 1, 2015, which will save 2,000 million euros, or 4.000 million if the social dialogue can also freeze supplementary pensions.

Valls confirmed that the government will in the years to 30,000 additional jobs in education, as planned, and others whose figure is not clear in the police and justice, while the strength of all other ministries will continue to decline. Diet slimming the French State, the gifted best, protector and also the most expensive in Europe keep costs as 56 % of GDP, has set in motion.

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Posted by Khalil Khan on May 1 2014. Filed under Europe, World. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.