Price controls, exploding spending… Mélenchon’s ultra-left proposals for France

National team Of Marine Le Pen get 10.1 million votes in the second round of the French legislative elections but remained 143 seats. On the other end New Popular Front Of Jean-Luc Mélenchon was made with 7 million votes This allowed him to add 163 representativesWhile the coalition Together Of Emmanuel Macron reached 6.7 million support and 163 seats. The Republicans, the traditional formation of the French centre-right, finished some distance behind, winning 1.5 million votes and 58 seats.

The result is good Melanchon opens a future marked by the turn of On the far left. His party, the New Popular Front, integrates four movements under a single umbrella: namely, called the Radical Platform Rebellious France integrated into the dynastic Socialist Party, the environmentalist Greens, and the old Communist Party.

In the economic key, the program of the New Popular Front aspires to implement a comprehensive battery Interventional measures which includes uploading Minimum wage 1,600 euros Monthly, approval rate control in supermarkets and energy, stopping short of raising the retirement age to 64 or devoting massive resources to “green” investment programs.

since Melanchon presented his program, it was criticized by numerous analysts and even MEDEF Employers Organisation. However, the far-left has defended itself against these attacks by saying it will be able to finance its radical program. “Excess Profit Tax” and recovering Wealth tax.

New Popular Front leader says his government may raise it 150,000 million more through these two mediums. This is clearly an overestimate, since it does not take into account the rational response of private agents to such tax predation. Indeed, there is no escaping the fact that the wealth tax was abolished Billionaire capital flight He France was suffering.

In fact, the former socialist president François Hollande Fiscal policies of this type have already been attempted and faced setbacks from the courts and the backlash from companies and households, who adapted their behavior Leave the revenue generated from taxes on the rich at zero. Despite everything, it is good for Mélenchon to say that his tax increase will generate 150,000 million because this totally inadequate calculation helps him to say that he proposes to increase spending by the same amount The deficit will not increase.

Connected

As they say, “paper can handle anything”, as estimates published in the press have shown Cost ₹286,000 million Implementation and reduction of New Popular Front’s spending proposals Fundraising Capacity less than 50,000 million Its star tax measures. Thus, the budget gap will widen further €230,000 million, leaving France on the brink of collapse.

this is where they come from Attack of the President himself, Emmanuel Macron, or your finance minister, Bruno Le Mairewho consider that the New Popular Front’s economic proposals consist of “promised gifts without financing”, which is why they define these ideas as “proposals” Dangerous and lacks a minimum of realism”.

Socialist Valerie Rabault I wanted to intervene in this debate and point out that the electoral program presented by Mélenchon would have a more moderate cost, Of approximately 106,000 million euros. However, in a clear display of leadership from the coalition’s most radical members, Francia Insumissa responded to these statements Statement in which he contradicted Rabault’s statements And they’ve made it clear that they aspire to Huge budget expansion.

In fact, Olivier Faure, who leads the Socialist Party and is part of the steering committee of the New Popular Front, has also promoted this false rhetoric, stating that the alliance “will ensure that an ambitious project is funded by taking money from the pockets of those who have the capacity to earn more,” allowing “a civic revival” that would be funded “by those who have the most.”

This stale government program involves the reactivation of a proposal that aims to increase Sections 5 to 14 of Income tax or a change in social contributions that would eliminate the current, flat-type model and introduce a progressive system without any limits or ceilings. Similarly, a limit on inheritances is proposed and various deductions are proposed to be abolished Corporation tax.

On the other hand, we must not forget that France’s financial situation is very worrying, The European Commission The application is opened High loss procedure against French country. In late May, the debt rating agency Standard & Poor’s downgraded the French rating from AA to AA-, Citing the main concern “The budget situation is deteriorating rapidly.”

In 2023, the self-proclaimed “liberal” government of Emmanuel Macron ends the year with a deficit 5.5% of Gross Domestic Product, The EU has the largest imbalance of all major economies. The debt accumulated by the treasury closed the year at 111% of GDP. Worse, tax revenues are falling 21 billion in a collection that reflects The country’s disastrous position in terms of tax competitiveness. On the other hand, France has been pushed down to 62nd place in the world table in the latest edition of the Index of Economic Freedom. Grade of only 62.5 marks out of 100.