National Front: Inconsistent Economic Projects

Posted on February 12th. 2017 17:21

The economy has not been a major concern of the National Front until now. But because it is an unavoidable subject to gain power, the party has been working on it, even if it does not yet have many experienced economists. For one purpose: gaining trust. A detailed review of FN’s main proposals is based on a stricter and more open vision of the economy, showing that the goals have not been achieved.

Exit from the euro

This is the basis of FN’s economic policy. According to party leaders, the euro is overvalued, negatively impacting France’s exports and leading to a hollowing out of the country’s industry.Therefore, MarineLePen “Regaining our financial sovereignty”By negotiating with our European partner the day after his election. If unsuccessful, it will organize France’s accession to the European Union, and thus the Euro referendum. Even if the question about the long-term feasibility of the euro area and the disadvantages of a single currency is justified, the consequences of withdrawal need to be studied. For Marine Le Pen “When we return to the new Fran, the French do not understand it […].. They see no difference. »» Hard to believe. France is a country with a large trade deficit, so the value of the new franc will drop sharply.

This leads to a decline in consumer purchasing power, as imports from Germany, China and the United States will be more expensive due to devaluation. Bankruptcy increases accordingly. On the public debt side, at the legal level, you can repay in francs, as FN claims. However, investors refuse to lend to France, except for exorbitant interest rates. And rating agencies have already warned that France will be declared by default.

The euro-denominated debt of private companies is much higher because the sales of these companies are low-value francs. Finally, the re-industrialization of the country could probably take place in the second stage. However, it will take years for this to happen. Until then, the party will not propose an appropriate solution. As FN hopes, establishing a common currency in the model of ECUs in the 1990s will not prevent the devaluation of the new franc following the dissolution of the euro. ..

Video-Marine Le Pen’s Inconsistent Economic Program

10% tax on employment of foreign workers

Country preference is one of FN’s favorite themes. This is the reason why the Constitution introduces a tax of 10% of the total monthly salary for all foreign workers, including Europeans. The problem is, in the final count, France had 350,000 cross-border workers in 2012, and we can expect retaliation from neighboring countries. Needless to say, foreigners’ jobs may require skills that French people do not have. Needless to say, the European Directive on posted workers will be abolished.

3% tax on imported goods

This is the French version of Trump’s tax. Marine Le Pen wants to impose a 3% tax on all imports in order to raise funds for purchasing power bonuses that benefit low incomes. This would theoretically bring € 15 billion. Again, if we need to consider the impact of globalization on a particular category of population, we say nothing that this tax will solve the problem.

Indiscriminate taxation of imports from Bangladesh, Canada and Italy would once again be inappropriate. Some imports can be replaced with French works, others do not. And the skills of the French workforce are, on average, much higher than those of many emerging countries.

Returning “40 billion” euro purchasing power

Marine Le Pen’s program plans to “return 40 billion euros to France”. Candidates plan to increase allowances for adults with minimum old age and disabilities, reduce the first three brackets of income tax by 10%, exempt overtime and pay a purchasing power bonus for income of less than € 1,500 per month doing. There are plans to hire police officers and military police, as well as investment in R & D and defense.

FN predicts that all these measures will be funded by an increase in the budget deficit in the short term. Above all, the party is betting on the savings that come from fighting taxes and social fraud, and simplifying administration. These two areas are the proportion of public spending on GDP that should be able to release 60 billion euros in five years while resuming growth and lowering the proportion. It is permissible to doubt it.