“France must be freed from the excess weight of the State, and therefore from taxes”: Marc Touati is expected in Alès in a few days

Jean-Pierre de Faria reçoit l’économiste Marc Touati. Midi Libre – CHARLES LEDUC

L'économiste est l’invité du réseau Gard entreprises, qui l'a invité pour sa rentrée. Entretien.

Economist and president of the consulting firm Acdefi, Marc Touati, guest at the economic back-to-school of Gard entreprises on January 30, does not mince his words: “We have successive governments that are navigating blindly. Without a majority in the Assembly, the situation is blocked. Our leaders are trying to maneuver, but in the end it is more like a small arrangement between friends than a deep reform. By trying to please everyone, we get along with no one.”

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For the economist, the observation is simple, “there is a shortage of 100 billion (Md) euros in the coffers. This is not a simple miscalculation, but a matter of state”, and without having a magic wand, he indicates well-known avenues of thought. “No government has the courage to tackle the reduction in public spending, which represents 57% of the gross domestic product (GDP), that is, wealth. All that leaders know how to do to compensate is increase taxes. This is no longer sustainable for businesses or households. The French have been tightening their belts for 40 years, now it is up to the State to reduce spending.”

According to the economist who will develop his arguments during a conference at Myriapôle, “France is the number one country for taxes. Social benefits represent 33% of total public spending. Operating expenses amount to 32%. This is no longer possible. Since 2020, public debt has exploded with an increase of €915 billion. Today, we have a deficit of €3,300 billion. At the same time, GDP has only increased by €465 billion. Unemployment is increasing, poverty too. Where is the money going ? I think it is being misused.”

American pragmatism versus European dogmatism

Under the formula “shock therapy “benevolent”, Marc Touati proposes to relaunch the economy.“France must be freed from the excess burden of the State, and therefore from taxes. A reduction in the CSG, or around €50 billion, would restore confidence. We must reduce the administrative layers with the 700 useless committees. It's just common sense. We can save €50 billion by cutting operating expenses. €30 billion, if we effectively fight tax fraud, €20 billion more for social fraud. Yes, there are solutions to improve our finances.”

The arrival of Donald Trump at the White House does not necessarily worry the economist: “Our problems do not come from Trump, we already had them before. We must not make him a scapegoat. What is certain is that he will kick the anthill. Afterwards, he is a businessman, he will want to negotiate. Since 1995, Europe has not experienced strong growth unlike the USA. Why ? They are pragmatic, we are dogmatic. We only produce rules. If we need milestones, we also need freedom and flexibility. Our VSEs-SMEs are suffocating. Our politicians must stop making us believe that money falls from the sky, otherwise we are heading straight for a wall.”

The conference is scheduled for Thursday, January 30, at 6:30 p.m., at Digit'Alès (Pist-Oasis). I subscribe to read the rest