Michel Barnier (LR) is the new Prime Minister

While a name was expected on September 4, it is finally with a slight delay that the President of the Republic announces the appointment of the person who will have the heavy task of forming a government capable of resisting the axe of the motion of censure. It is indeed Michel Barnier who will have to present "a government of unity" according to Emmanuel Macron.

A member of the main successive Gaullist parties (UDR, RPR, UMP, LR), Michel Barnier began his political career in 1973, first in Savoie, then at national and European level. He was elected as a member of parliament for the first time in 1978.

Having been a minister several times (Environment, European Affairs, Foreign Affairs, Agriculture and Food) and twice European Commissioner (Regional Policy then Internal Market and Financial Services), he was, from 2016, chief negotiator for the European Union responsible for leading the Brexit negotiations and then took charge of the operational force formed to finalise these and negotiate future relations with the United Kingdom.

A vigilant welcome from the SDI on behalf of the self-employed and VSEs

The SDI welcomes with vigilance the nomination of Michel Barnier to the post of Prime Minister.

The main pitfall of a divisive nomination having been averted, independent professionals and managers of very small businesses remain in a state of expectation as to the team that will be appointed and the economic policy that will have to be approved by Parliament. The context of an uncontrolled budget deficit associated with demands on purchasing power encourages independent professionals and very small businesses to be extremely vigilant as to the social and fiscal risks that threaten their activities.

Indeed, the latest SDI survey[1] shows that, while the absence of a government does not in itself constitute a barrier to the continuation of activity, the strong concerns expressed (94% negative state of mind) relate to the economic and social policy that will be implemented in the coming months.

Their fears mainly concern:

• An increase in compulsory levies (89%);
• A policy of budgetary rigor (57%);
• A strong increase in salaries (79%) and/or their indexation to inflation (45%).

Pending the direction that will be taken, 69% of investment projects and 52% of recruitment projects have been cancelled or suspended.

Thus, immense tasks await the new government and its coalition majority:

• Restore the confidence of the self-employed and managers of very small businesses in taking into account their cash flow issues (property tax, PGE) and development issues (payroll taxes);
• Stop the haemorrhage of business failures;
• Responding to France's budgetary drift, which has been constantly revised upwards since February 2024, and is currently being examined by the European Union.

For Marc Sanchez, Secretary General of SDI: "From the point of view of the self-employed and VSEs, the appointment of Michel Barnier as head of government requires vigilance because it says nothing at this stage about the entrepreneurial policy that will be led by a coalition majority, particularly in a context of a budget deficit that was recently revised upwards. As for the economic reality of the country, the SDI can claim to have always shared its findings. It is clear that it has never been wrong. Optimistic and enthusiastic, we believe in the possibility of a government team capable of considering companies with fewer than ten employees differently and making them the heart, the engine, of our country's economic recovery. A good way to reduce France's budget deficit!"

[1] Flash survey on political situation (1279 respondents) https://sdi-pme.fr/wp-content/uploads/2024/09/Flash-Situation-politique

Intercommunalities of France: “Now, let’s get to work!”

The elected representatives of the Intercommunalités de France bodies congratulate Michel Barnier on his appointment as Prime Minister. After two months without a Government, the association hopes that a Government will now be formed quickly in order to get to work as soon as possible. Intercommunalités de France calls for a change of method, based on renewed dialogue and a spirit of consultation between the State and representatives of the communities.

The urgency lies mainly in the preparation of the budget. For Intercommunalités de France, Parliament, the Government and all associations of elected officials must work hand in hand on this work, which is essential to the smooth running of the country. The association has no doubt that with his experience of local authorities, Michel Barnier will be able to affirm that in matters of public finances, the fight does not lie in a sterile opposition between the State and the communities, but in the emergence of shared solutions.

In order not to disappoint the French people, the State and local authorities must not position themselves as enemies but contribute to the emergence of consensus in the interest of France. To return to this, it is essential to talk to each other and work better together, as local elected officials know how to do in their municipalities and inter-municipalities.