5 of July 1 it will increase by 600 million

The Government promises to reduce the public deficit to 6 of GDP in 2011 and 3 in 2013. Is - this credible

The key, for me, this is already the goal by all means set for 2011. So the credibility of the France. It is therefore essential that the Government specify concrete measures that underpin its very ambitious commitments on the evolution of public expenditure. Fix an increase limited to 0.6 per cent per year in volume, more than 2 against the previous years, requires drastic savings. For the social sphere as in the State.

Savings of 5 on intervention costs (benefits, subsidies, etc.), nearly EUR 4 billion, are programmed...

Yes, but where are they For operating expenditure, there are limiting credits and I trust the Government to stand. The interventions which many operate in "window", to make difficult but necessary choices. Why, for example, do not freeze systematically benefits, as aid for housing I suggest that the APL for students can no longer be combined with the advantage of the tax demi-part for parents. Certain exemptions of target loads should be questioned, or at least suffer at the time of plane, and some aid to firms for research, since the research tax credit is very dynamic. Also need to come back on the growth of 25 of the adult allowance disabled by 2012 The measures envisaged must be specified in the budget orientation debate.

The gel from the point of index of officials in 2011 enough to stabilize the payroll

It must achieve a freeze in value of the payroll next year, which is absolutely not the blocking of the treatment of each individual employee. With the rise of 0.5 of July 1, it will increase by 600 million. Should restrict increases in premiums or categorical measures by controlling more policy for each Department.

Are revenue forecasts realistic

Corporations tax forecast could be overestimated given carryforwards deficits accumulated by corporations. In these circumstances, I consider should be the reduction of tax and social niches effort at EUR 10 billion by 2011.

This is what advocates François Baroin...

At the difference that it integrates into this figure more than 3 billion niche reductions already announced in the reform of pensions. For me, these 10 billion must be supplemented.

How should we proceed

With Jean-François Copé and Pierre Méhaignerie, we propose a plan comprising 6 billion of tax expenditure reductions and lower social exemptions 4 billion. The effort must be fair, it must focus on all of the taxes: the tax, corporation tax, the tax of solidarity on the fortune, but also the VAT and the internal tax on petroleum products. The 10 rabot kick should apply on the broadest possible base. It must include income already capped tax cuts (employment at home, rental investment, etc.), to which we could add tax niche to the title of donations. The plane shot would be then 1.2 billion savings.

Must also hit companies

Yes. I am thinking in particular of the research tax credit, which gives obviously rise to many effects of boon, and the tax credit on the award. This price reduction of 10 would provide 400 million euros. Should also address some reduced VAT rates: moving from 5.5 to 10 or 12 for hotel, restoration and renovation materials purchase yield of the order of EUR 3 billion. We must also accelerate the end of the title of the biofuels tax credit. The sector is sufficiently developed to no longer need to be subsidized.

Would the effort not too brutal

Since 2000, the State has lost EUR 100 billion in tax revenue, two-thirds to the title of the tax cuts, while they have were offset by a decrease in spending! Need to reverse the trend. I would add that tax revenue, since the France undertook in its programme of stability at the European level, decisions intervened from even reduce them: we must thus compensate for the cancellation by the Constitutional Council of the carbon tax in respect of its component companies (EUR 1.4 billion) and that of the benefits plan not commercial of less than 5 employees in respect of the reform of the tax (EUR 400 million). On this last point, I will propose a new specific plate which discriminate more companies depending on their size in finance law. We could defer the deletion of the last tranche of annual lump-sum tax (IFA), scheduled next year. In total, this is an effort on income tax and social of the order of EUR 15 billion which is necessary in order to demonstrate our determination to reduce public deficits and debt.