Business Surtax: Bernard Arnault "is right", according to the president of Medef

"He is obviously right, like other major business leaders who have expressed the same views on taxation," Patrick Martin said on RTL.

Mr Arnault said on Tuesday that the corporate tax surcharge, which is set to hit large companies to the tune of 8 billion euros this year, was "pushing outsourcing", particularly to the United States.

"The incomprehension is turning into anger" among Medef members, according to Mr. Martin, and "the consequences are that those who can leave are leaving. And they are right."

"When you have a country that has growth, attractive conditions in terms of energy prices, taxation, you go there, it's normal," noted the president of Medef.

"In August, I sounded the alarm, saying that we were going to be in recession in the fourth quarter, employment was going to deteriorate: the political class, in its vast majority, did not hear anything (...), they are not even listening," he lamented.

"We want real structural reforms," ​​he maintained, criticizing in passing the planned abandonment of 4.000 job cuts in National Education, because this results in "preserving the administration."

As unemployment rises and the INSEE announced on Thursday a 0,1% decline in GDP in the fourth quarter, Mr. Martin considered that there is "an urgent need for our political decision-makers to pull themselves together and understand what is happening across the world."

"We are talking to a wall," he regretted, taking a dig at the Minister of the Economy Eric Lombard, "who is making his best efforts but whose business leaders say that he is very far from our realities."

Regarding the financing of social protection, Patrick Martin said he was "of course" in favour of the introduction of a social VAT, consisting in particular of reducing employer contributions by increasing the VAT rate, then allocating the corresponding revenue to Social Security.

"It is one of the many taboos in public debate, while off the record, many people know that this is the solution," he assured.