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France Proposes Controversial Budget Measure: Work One Day for Free

2024-11-21

Author: Ming

France Proposes Controversial Budget Measure: Work One Day for Free

In a bold and controversial move, France’s government is proposing that citizens work an additional unpaid day each year, totaling seven extra hours, to bolster national finances amid a daunting budget crisis. This proposal has already sparked heated discussions and backlash from both workers and businesses alike.

The Senate approved this measure on November 21, which could potentially generate an additional €2.5 billion (approximately $2.63 billion) for the state through increased labor contributions. This move comes as Prime Minister Michel Barnier's already fragile coalition navigates a deeply divided parliament, facing threats of a no-confidence vote from the far-right National Rally party, led by Marine Le Pen.

The amendment, introduced by center-right Senator Elisabeth Doineau, requires workers to clock in these extra hours without pay. Employers would, however, be responsible for increased social security contributions during this additional time. Previous discussions suggested eliminating a public holiday in exchange for an extra working day, but consensus on which holiday to cut proved elusive.

France’s historical context adds another layer to this debate. The nation famously instituted a 35-hour workweek in 2000, but, ironically, the average French worker still clocks roughly 36 hours weekly—more than many neighboring European countries. The government’s push for more work comes in light of rising expenditures and disappointing tax revenue, as they aim to save €60 billion in the 2025 budget through a combination of spending cuts and increased taxation.

While tax rises primarily target the affluent and large corporations, proposals also include scaling back tax incentives for employer social security contributions for low-income workers, aiming to raise an additional €4 billion. However, businesses are expressing deep concern over how these changes could escalate labor costs, which are already among Europe’s highest. For instance, Julien Crepin, head of the corporate cleaning firm Bio Propre, warns that any hike in expenses could jeopardize his business and lead to layoffs.

Criticism is not just limited to businesses; Barnier’s finance minister, Antoine Armand, shares concerns regarding the reduction of tax incentives, emphasizing the need for French workers to extend their hours for the greater good of social security funding. “An hour longer worked means an hour more of social security contributions,” Armand remarked in an interview.

As these proposals remain under scrutiny and face possible rejection, the nation watches closely. Will the French people accept the notion of giving up their time for the sake of the government’s budget? Only time will tell if this measure can withstand the political storms ahead. Stay tuned for updates on this unfolding story!