French abroad, the government backs down

The French government may be backtracking on its decision to raise taxes on French expatriates. The Minister of Action and Public Accounts, Gérald Darmanin, has called for the suspension of a decree allowing this increase in social security contributions, which would pose a problem of fairness.

This decree had aroused the ire of deputies representing French people abroad, who found it unfair. The decree dates back to December 30, 2017. It provides for an increase in social security contributions for French expatriates. In fact, this increase makes it possible to pass on the 1.7 point CGS increase, in force since January 1, to these expatriates.

The CSG, or Contribution Sociale Généralisée, contributes to the financing of social protection. This tax is paid by all residents of France. According to its critics, this new tax would create a discrepancy to the disadvantage of French people living abroad. In particular, it would affect the purchasing power of expatriates, who often receive small pensions.

Under pressure, Gérald Darmanin has therefore asked the Prime Minister, Edouard Philippe, to suspend him while he finds an alternative. The about-face of the Minister of Public Accounts was welcomed by the deputies representing the interested parties. Anne Genetet, the deputy of République en Marche, should work on a more equitable solution.

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