Jean Castex announcements at the University of Medef

Invited to speak at the traditional university in Medef, Prime Minister Jean Castex lifted the veil on some of the provisions of the recovery plan, which will be presented on 3 September. Among them, maintaining partial unemployment “at least until November 1”.

It is a must for all heads of government at the beginning of the school year. The Covid-19 crisis demands, the speech of Jean Castex was eagerly awaited, on Wednesday 26 August, at the University of Medef which named the “Renaissance for French companies”. The Prime Minister reassured employers by outlining certain aspects of the economic recovery plan that will be unveiled on 3 September.

The current conditions for partial unemployment benefits will be maintained “at least until November 1” while they would be revised down on October 1, Jean Castex announced on Wednesday.

In July, the government had decided that the classic compensation for partial unemployment, limited to six months, would increase from 1 October, from 84 to 72% of the net salary for the employee and from 85 to 60% of the cost for the employees. business.

Jean Castex at the University of Medef: economic announcements to counter “French concerns”

“As for the most affected sectors among the most affected, culture, sports, tourism, events, they will maintain until the end of the year access to sub-activity” under current conditions, one he added.

Jean Castex also recalled that companies had the opportunity to use the new long-term sub-activity mechanism that has been in place since the end of July.

This allows a reduction of working hours up to a maximum of 40% of the working hours covered by a company or branch agreement, from 6 to 24 months, validated by the administration and including commitments on employment and training.

During working hours, the employee receives 84% ​​of his net salary (or 70% of his gross), calculated from a maximum salary of 4.5 Smic. As these are at most 40% of his working hours, this guarantees 93% of his net salary.

For its part, the company will receive compensation of 85% of the compensation paid to the employee (ie 15% of the remainder of the fee) for an agreement entered into before 1 October and 80% for an agreement entered into after.

The stimulus plan will be “balanced between large and small companies”, promised the head of government. He praised the “power of funds” in this plan, the 100 billion that represented “four times more than the 2008 plan, a third of the state budget”. And “in terms of national wealth, it is the most significant stimulus plan announced so far among European countries.”

In terms of its nature, it is a “stimulus through supply and investment” and not demand. A choice which, according to him, was motivated by the fact that “household income has been preserved in the crisis” and that “consumption resumed after containment”.

In front of an audience of business leaders, the Prime Minister detailed the terms of the announced 10 billion euro cut in production taxes from next year. It is a “measure (…) that we have been waiting for four years” to “be able to fight on equal terms with our close competitors”, had previously reminded the President of Medef Geoffroy Roux de Bézieux in his opening speech.

This reduction means a “division by two” of the Enterprise Value Added Tax (CVAE), by eliminating the part of this tax that currently goes to the regions. In addition, the government will reduce the ceiling on the territorial financial contribution (CET) as a proportion of the added value “from 3% today to 2% tomorrow”.

Finally, “the method of property taxation of industrial premises will be fundamentally reformed with the aim of halving the tax burden on these premises”.

With AFP