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All-time record corporate profits in France amid household crises

Wednesday, 10 August 2022 4:17 AM [ Last Update: Wednesday, 10 August 2022 4:36 AM ]

Ramin Mazaheri
Press TV, Paris

France's top corporations, represented in the nation’s CAC 40 stock index, just reported their best quarter in its history.

73 billion euros in profits represents a huge 26% increase from last year. The record comes despite the unrest in Ukraine, once-in-a-generation inflation, energy shortages, near-recession levels of economic growth, and the worst difficulties for the average French household since the 2008 economic crisis.

Pressure is mounting to tax big businesses. Not only are they obviously benefiting from soaring prices, but tax evasion is widespread. National energy giant Total has already declared 18 billion euros in profits this year, but they have not paid one euro in French taxes in two years.

However, the new French Parliament just rejected a leftist-led bill that would have levied new, inflation-related taxes on corporate super-profits. It is a major victory for President Emmanuel Macron and an indication of where French politics will be steered in his second term.

In June’s legislative elections, Macron lost his absolute majority in parliament. Even those aligned with him ideologically have refused to make a formal coalition, but the legislature still leans heavily to the right.

The all-time record corporate profits are likely to inflame economic-based movements such as the Yellow Vests, with many predicting that this autumn could see explosive social unrest.

Despite the historic profits and the worries about social turmoil, Macron has vowed to continue with far-right economic austerity measures which will further roll back the social safety net, increase economic inequality and cut taxes on the wealthy and corporations.

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