French Minister Rams Pro-Business Stance Home With Recovery Plan

(Bloomberg) -- French President Emmanuel Macron isn’t giving up on his pro-business stance and will press on with his agenda even after huge state interventions in the economy during the coronavirus crisis, according to his trade minister.

At the height of the outbreak, Macron hit pause on overhauls of unemployment benefits and pensions as he called for French people -- starting with himself -- to “reinvent” and cast aside ideologies. That raised doubt over his agenda, which began in 2017 with measures to attract foreign investors by cutting red tape and reining in tax and public expenses.

But Franck Riester says a stimulus plan Macron is crafting will focus on boosting supply and encouraging investment. The plan, set to be unveiled this week and which the government says amounts to 100 billion euros ($120 billion), includes a 10-billion-euro tax cut for industry next year.

“We will hammer it home, carry out the reforms,” the minister told Bloomberg in an interview. “We haven’t given up on our spirit of conquest.”

Riester, who was culture minister until the government reshuffle in July, said the “objective is also to explain to foreign investors how this a pro-business plan.”

He said his other top trade priority will be increasing commerce with the rest of Europe. As France’s Veolia Environnement SA attempts to buy rival Suez SA to create a water and waste treatment giant, the minister said France has expertise to sell abroad in the that industry and “sustainable cities.”

On Friday, Macron told reporters that the health crisis, which has sent the economy on a tailspin, was an “opportunity” to transform France. He pledged to pursue his pension reform, albeit with tweaks.

The government also won’t give up on the abolition of the wealth tax, said Riester, who joined Macron’s administration after building a political career with the center-right opposition party Les Republicains.

Until the end of Macron’s mandate in 2022, “it’s key that we succeed with the recovery plan,” Riester said. “That’s what the French expect from the government.”

©2020 Bloomberg L.P.