Paris (AFP)

Two weeks before the presentation of the state budget, the building sector is still trying to avoid adverse arbitration even if he admits that his worries for the activity have, for the time being, been a little excessive.

"It's a good surprise, because the activity holds", summarized Tuesday Jacques Chanut, president of the French Federation of Building (FFB), the main organization of the sector, during a review of the return.

The federation had expected until then a gloomy year, with a slight decline (-0.5%) of the activity of the building. Finally, it forecasts a slight increase (+ 1.3%).

Main explanation, the market for new housing and, in particular, houses has performed significantly better than expected, despite the general trend of a decline in construction over the past two years.

According to the federation, home sales have rebounded since the beginning of the year and accelerated in recent months, leaving waiting for a recovery in construction.

The activity "is first because there is a market," said Chanut, while the government recently admitted that it was taking steps to discourage the construction of houses on the outskirts of the city. cities.

It is, moreover, not the executive that the federation holds responsible for this renewed activity: "for once, we can say + Thank you banks +", rather ironically Mr. Chanut.

In fact, credit conditions are historically favorable for French households, while the exceptionally accommodating policy of the European Central Bank (ECB) persists.

"Nobody had considered nine months ago that there would be credit rates that continue to decline," insisted the president of the FFB.

According to some economists, however, the rebound in home sales could also be due to a one-off element: a deadweight effect before the end of the zero-rate loan (PTZ) next year in "relaxed" areas, where dominates individual housing.

- The renovation stagnates -

It is in the 2020 budget, scheduled for presentation on 25 September, that the future of this property aid must be clarified, among many sensitive topics for the building.

In this regard, the federation on Tuesday multiplied the calls of the foot for the government to mitigate arbitrations that are unfavorable to the sector.

The PTZ, for example, will be phased out in "an area that is critical for the low-income market," said Chanut, assuring that "discussions" were still taking place with the Housing Ministry to "perpetuate" a form help.

Another major budgetary issue for the building sector, the reform of the energy renovation aid worries the federation, which expects only a stagnation of activity this year in the renovation and maintenance.

The government is going to transform a tax credit system, which imposes a delay to take advantage of the aid, as a bonus, which can be obtained immediately. But despite the desire to make this operation more incentive, the building fears that it becomes less readable.

"We are not going towards a simplification of the system", regretted Mr. Chanut. "Clearly, for us the account is not on what has been presented."

Above all, the federation opposes the likely exclusion of wealthier households: the government has not confirmed it officially but already puts forward a "refocusing" on the most modest.

"Our compatriots who have more income, (...) it may be necessary to take advantage of this level of income to encourage them to do work now, in a comprehensive way," said Mr. Chanut.

Finally, the sector continues to plead its case before the planned elimination of tax benefits, and in particular, on a fuel used in the sector, the non-road diesel (GNR): the organizations of the sector should obtain a spread of the measure on several years.

The federation is waiting for the future of another advantage, the "specific lump sum deduction" targeted a few months ago by Edward Philippe, Prime Minister, and on which the executive must still specify its arbitration.

Generalized in the sector, it allows the company to deduct a part of the gross salary from the amount on which the contributions are calculated. The employee thus benefits mechanically from a higher net salary, even if the smallest contributions eventually give him fewer rights.

© 2019 AFP