Daily Reports
Government's Economic Simplification Law Faces Major Senate Setbacks
The executive branch faced significant opposition in the Senate on Tuesday, ultimately resulting in multiple setbacks for its much-discussed economic simplification bill. Anchored by promises of 'simplification,' the bill aimed to implement several pivotal changes, including a streamlined pay slip and the elimination of numerous administrative forms without requiring parliamentary approval. Despite the government's assurances, senators were not convinced of its efficacy.
Central to the bill was the introduction of a reduced pay slip, cutting down from 55 lines to around fifteen for better clarity. Bruno Le Maire, the Minister of Economy, championed this initiative, which he claimed would make it significantly easier for employees to comprehend their payroll details. However, the upper house rejected the proposal, citing concerns about increased complexity in practicality. Environmentalist senator Raymonde Poncet-Monge criticized the reform as a move that would 'opacify the payroll,' arguing that no employer or union organization demanded such changes.
The senatorial majority, comprising an alliance between the right and the center, posited that the reform would only double the work for companies. Employers would need to maintain detailed data in an annex file accessible to employees, inevitably increasing their workload. While the government promised to transfer this responsibility to the national portal of social rights by 2027, this assurance failed to sway the Senate. Olivia Grégoire, the Minister for Business, lamented the Senate's staunch opposition, noting that 'French employees have a lot of difficulty understanding their pay slips,' and contending that this proposal was the sole measure offering simplification for employees.
Further complicating the situation for the government, the Senate also disapproved an authorization allowing the executive to reform extensive sections of business administration via ordinance, without legislative direction. Bercy, the Ministry of Economy and Finance, aimed to simplify thousands of time-consuming declaration procedures and reduce the number of mandatory forms by 2030. This proposal was rebuffed in the Senate, with co-rapporteur Catherine Di Folco remarking, 'It's a joke. Do you think we're going to give you a blank check to reform?'
Contention also arose over the legal deadline for small business owners to notify employees of an impending sale. The existing two-month notice period was proposed to be reduced to one month by the government, which argued that the current timeline could hinder sales and discourage potential buyers. However, the Senate opted to completely remove this requirement, even as it faced criticism from the left for jeopardizing employee transparency and potential opportunities to take over businesses. Nonetheless, the Senate did approve the establishment of 'SME tests', a mechanism to evaluate the impacts of all standards on businesses in advance.
- Additionally, the bill included a proposal to centralize public procurement litigation under the administration's jurisdiction, a measure that also met resistance and was not adopted.
- The Senate's disapproval extended to other facets of the bill, illustrating a broader pattern of reluctance towards comprehensive overhauls without thorough parliamentary scrutiny and the inclusion of all relevant stakeholders in the decision-making process.
- Continued debate is expected as the bill progresses, with both sides preparing for further negotiations to find a middle ground that balances simplification goals with practical feasibility and stakeholder interests.
