the majority wants to tackle share buybacks by companies | EUROtoday

We thought the measure was buried, however right here it comes again by way of the voice of the presidential majority. During the second assembly of the “Bercy dialogues”, which introduced collectively, on Tuesday September 19, round twenty parliamentarians from all sides forward of the budgetary debates in Parliament, two Renaissance pillars of the finance committee of the National Assembly, the rapporteur of the finances Jean-René Cazeneuve and the deputy for Val-de-Marne Mathieu Lefèvre, spoke of the want to extra strictly regulate share buybacks. In the crosshairs are companies that purchase again their shares after which destroy them – which artificially will increase their inventory market worth, with none hyperlink to their financial efficiency. The new Minister for Public Accounts, Thomas Cazenave, declared himself ” open ” on this topic, on which the deputies will work in view of the debates on the 2024 finance invoice, unveiled on September 27.

“Buying back shares for a company can be a way of taking away profits that could have been redistributed to employees. We are ready to work to move forward by amendment on this subject”indicated Mr. Cazenave on Sud Radio, Wednesday September 20.

It was Emmanuel Macron who, in March, throughout an interview on TF1 and France 2, launched the thought of ​​a “ exceptional contribution » on the large customary groups of this practice.

In a context, already, of stress on buying energy, and whereas the controversy over the taxation of superprofits remained full of life, the Head of State denounced to tv viewers the “ cynicism » of “ these big companies that we helped”. He declared that he wished “that this money, when there are exceptional profits from companies ready to buy back their own shares, their workers can benefit from it”. French companies spent practically 29 billion euros on share buybacks in 2021, and greater than 27 billion in 2022, or 3 times greater than earlier than Covid-19.

“A question of social justice”

In the thoughts of the government, nonetheless, it was not a query of taxing, however of encouraging companies to pay their workers higher by distributing extra profit-sharing, participation or bonuses. “ We could consider, for example, a doubling of the amounts paid,” the Minister of the Economy, Bruno Le Maire, instantly clarified, concentrating on companies with greater than 5,000 workers.

But since then, radio silence. Until Tuesday night, subsequently, when the destiny to be reserved for share buybacks was talked about by the representatives of the majority, supported by the MoDem and Horizons. Simple political show, or actual need to transfer ahead? While inflation continues to gasoline the discontent of the French, “we talked about taxing” share buybacks, signifies World Mr. Cazeneuve.

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