The professional engineering federation is concerned about the 2025 budget decisions, which threaten the competitiveness and innovation of French companies

However, for the country to meet its objectives in terms of ecological/energy/digital transition and reindustrialization, it is necessary to maintain a coherent, stable and trustworthy fiscal and budgetary framework. However, certain provisions are already worrying Syntec-Ingénierie, which warns of the consequences that directly impact the economic activity and competitiveness of French companies, particularly in the engineering sector.

An increase in corporate taxation

If Syntec-Ingénierie, the professional engineering federation, recognizes the absolute necessity of a budgetary recovery of public finances, this must be done by revisiting the effectiveness of each of the public policies and must in no case penalize productive investment and sustainable growth.

Maintaining the CVAE (Business Value Added Contribution) rates at their 2024 level until 2027, as well as extending them until 2030, sends a very unfavourable signal to French economic players.

Already faced with some of the highest tax and social security charges in Europe, much higher than those of our neighbouring countries, French companies are suffering a heavy competitive handicap.

Indeed, the Syntec Federation recently demonstrated in its study on the cost of skilled labor in France that "in comparison with the average situation in Germany, Spain, Italy and the Netherlands, levies on labor represent 6 points of gross salary more in France, on average between 1,4 and 2,5 times the minimum wage, 11 points between 2,5 and 3,5 times the minimum wage, 15 points at 4 times the minimum wage and more beyond that." (Source: International comparative study carried out by the Syntec Federation, in conjunction with the Rexecode institute, on the cost of qualified labor)

Budgetary decisions contrary to stated ambitions

While the ecological/energy transition and innovation are presented as national priorities, certain budgetary decisions are weakening these ambitions. The €530 million reduction in France 2030 credits, offset by a spreading of subsidies, is hindering strategic reindustrialization and innovation projects.

In line with what was undertaken within the framework of France 2030 and in accordance with the recommendations of the Draghi report, it is essential to maintain investment in research and innovation, which are at the heart of the competitiveness of French companies. Certain budgetary decisions are once again affecting this ecosystem:

• The reduction in the rate of operating expenses in the Research Tax Credit (CIR), going from 43% to 40%, having already seen a considerable decrease going from 50% to 43% in 2020.
• The removal of expenses related to patents and technological monitoring from the CIR base, which impacts small and medium-sized enterprises, the least able to bear these costs.
• The elimination of the “young doctors” system will harm the hiring of researchers and the strengthening of synergies between businesses and academic institutions.
• The reduction in apprenticeship aid is a barrier to upward mobility for many young people. These measures have enabled talented people, often from modest backgrounds or those who are not inclined to consider certain careers, to access high value-added professions. By weakening this aid, not only is the professional integration of young people jeopardized, but also the dynamism and influence of strategic sectors for the French economy.

A weakening of the internationalization of French companies

Finally, the professional engineering federation warns of the decline in funding allocated to public development aid, which it considers a strategic error. This funding is essential in the development and expansion of French companies towards promising markets and in developing and strengthening strategic partnerships with international markets. In this uncertain geopolitical context, this aid is becoming more than ever a fundamental lever of stability and support for internationalization, which must not be neglected. It helps accelerate the adaptation of these countries to climate change and the consideration of mitigation policies in their actions.

Syntec-Ingénierie, as a professional engineering federation and voice of companies in the sector, wishes to express its concern about these budgetary measures which risk weakening the competitiveness, innovation and attractiveness of France.

In the context where the ecological transition and technological and industrial sovereignty are more than ever differentiating strategic issues, it is essential that the nation's fiscal and budgetary framework supports these ambitions, rather than hindering them.

Syntec-Ingénierie will remain particularly vigilant regarding the impacts of these decisions on the development and sustainability of French engineering companies, and will continue to position the sector as a key player in responding to major current and future transitions.