WEEKLY SITUATIONAL REPORT
BY MIDA PARIS
13 JUNE – 18 JUNE 2005
Principal announcements and proposals of Thierry Breton
1 - Achieving fuller employment
A tax credit of 1,000 euros to steer young people into
occupations that are having trouble recruiting
Mr. Breton and Jean-François Copé (Vice-Minister, Budget) spelled
out the procedures associated with this tax credit. Announced by
the prime minister, the credit will be enacted under the enabling
statute for emergency measures to promote employment. It will be
in place by the fall.
Thierry Breton has commissioned a study on an incentive to
encourage job-seekers to relocate, and to help the long-term
unemployed and laid-off workers re-enter the work force.
2 - Expanding the working population
The Delalande tax has been eliminated to help boost the
labour force participation of seniors. In addition, new
measures are in the works to make it easier for people
between 60 and 65 to collect retirement benefits while
continuing to work, and even to do away with all
restrictions on people over 65.
Increase the labour force participation of women, and
expand their options for combining careers and
motherhood, by studying ways to improve the terms of their
leave and shorten the amount of time they spend outside
the labour market.
Encourage voluntary immigration in order to offset the
decline in our work force, and carefully identify future
manpower and skill needs. Make France more attractive to
foreign talent and people with high-level skills.
3 - Bolstering consumption
Thierry Breton presented the initial results of his new purchasing
power indicator, the “standard basket,” the cost of which fell
slightly between February and June. From now on Bercy will be
providing updates on “standard basket” prices every three months.
The Conseil national de la Consommation (CNC, or National
Consumer Council) will meet on 5 July to present its policy
measures for the improvement of consumer protection,
safety, representation and action.
4 - Strengthening small businesses
Thierry Breton has decided that Alternext, the new market
opened by Euronext for small and mid-cap companies, is
eligible for the “Madelin” income tax reduction.
Increase small businesses’ use of information and
communication technologies by introducing an “ICT-SME
2010 Action Plan” in September 2005. The Ministry for the
Economy, Finance and Industry will allocate seven million
euros in funding to the plan.
Facilitate small business access to financing and
Approach other EU member states and the European
Commission about drafting a joint position, so that the
option of reserving a portion of the public contracts
awarded by the European Union for small businesses can
be negotiated quickly at the WTO.
Make it mandatory for each public-sector procurement
agency to publish the share of government contracts
awarded to small businesses by autumn 2005.
5. Revitalize Research and Development (R&D)
To encourage small and medium businesses and industries to
engage in R&D, Thierry Breton has set a goal of 25% small
business participation in the programmes financed by the
Agence pour l’Innovation Industrielle (AII, or Industrial
A proposed improvement in the Research Tax Credit (CIR) is
being studied, to spur government support for research
conducted within companies.