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Édouard Philippe Unveils €50 Billion-a-Year Tax-for-Aid Swap in Pitch to Business

He presents a budget-neutral simplification aimed at lifting industrial investment, with specifics still to come.

Overview

  • The proposal cuts production taxes by €50 billion annually in exchange for an equivalent reduction in business aids, totaling €250 billion over a five-year term.
  • Philippe framed the plan as a supply-side competitiveness push and a “choc de simplification,” saying the state would help less so firms can produce more.
  • He announced the measure on LinkedIn as the first concrete plank of his 2027 economic program and promised regulatory and fiscal stability over the quinquennat.
  • He did not specify which taxes or aid schemes would be targeted; press cited common production levies such as CFE, C3S, CVAE and the tax on built property as possible areas.
  • The rollout comes during contentious budget votes in the National Assembly that have advanced tax increases, and commentators note the swap could create clear winners and losers.