Consolidate purchasing power support measures into a single check and reserve them for incomes of up to 1.2 Smic: the Circle of Economists unveiled its proposals on Sunday to dampen inflation, at the close of the 22nd Economic Meetings of 'Aix-en-Provence (Bouches-du-Rhone).

“The next twelve months will be decisive in limiting any economic and social tension,” say the organizers of the Meetings in their final statement.

“To maintain the purchasing power of the middle and working classes (…) it would be wise to group together the support mechanisms” for purchasing power in “a single check intended for the households who need it the most”, and to a maximum period of twelve months to avoid fueling inflation, continues the thirty or so economists who are members of the Circle.

The latter propose to allocate this check to people whose income is up to 1.2 Smic, or just over 1,560 euros net monthly.

Work “in progress” to narrow the scope of beneficiaries

If the government has not been so specific on the degree of targeting of aid, Prime Minister Elisabeth Borne confirmed on Saturday that "work was in progress" to ultimately narrow the scope of beneficiaries.

The Circle of Economists, on the other hand, distinguished itself from the executive by supporting the idea of ​​a 25% tax on “surplus profits linked to the economic situation” that certain companies would make, particularly in the energy sector.

This “exceptional” measure would contribute to the financing of purchasing power support systems, “like the United Kingdom and Italy”, add the economists.

In the short term, the Circle also pleads for a "significant reduction in production taxes" on companies.

The government has undertaken to abolish one of them, the Contribution on the added value of companies (CVAE), from 2023.

Also recommended are a reform of public policies centered on “the culture of results” and “the integration of a maximum of people of working age into the job market”, in particular young people and seniors.

In the longer term, the Circle of Economists calls for “massive investments” of 100 billion euros “in the fields of education, research, innovation and ecological transition”.

So many investments which must ultimately “contribute to long-term growth” and, in reference to the theme of the 2022 Aix Meetings, “allow us to succeed in the transformations of the world”, we still read in the final declaration.

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