Bloomberg Talks Medef's Fabrice Le Saché Talks French Political Turmoil
Sep 9, 2025
Fabrice Le Saché delves into the chaos following the collapse of the French government, examining potential successors and their influence on the business landscape. He highlights the urgent need for political compromise to rejuvenate France's economy under Emmanuel Macron's leadership. The discussion also warns about the risks a socialist prime minister might pose to entrepreneurship and private investment, emphasizing how stable governance is crucial for cultivating a favorable business environment.
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Debt Pressure Demands Political Compromise
- MEDEF prioritizes political compromise that enables pro-business policy over the identity of the prime minister.
- Fabrice Le Saché warns rising debt interest (forecast ~€100bn/year) makes reforms and investment urgent.
Reduce Social Spending And Taxes
- Cut taxes and revise social spending to free resources for investment and growth.
- Target pension and social spending reforms because they account for around two-thirds of the debt drivers.
High Capital Taxes Could Drive Away Wealth
- A Socialist-led government following its program would likely harm business by increasing capital taxes.
- Le Saché says higher capital-gains taxes risk driving entrepreneurs and wealth creators abroad, hurting growth needed to repay debt.