"Same place, same setting, same minister: stability prevails." On Thursday, January 5, French Finance Minister Bruno Le Maire undertook his new-year wishes ceremony at the Finance Ministry in Paris for the sixth time. But he appeared as determined as ever to play his own part.
He told France Inter radio on Wednesday he was to introduce a bill addressing the "green industry" in the "coming days." This bill, he said, "will include fiscal, regulatory and legislative provisions" to "advance the [creation] of industrial sites in France, encourage the decarbonization of industry, improve training and qualifications."
French President Emmanuel Macron addressed the issue at a cabinet meeting later that day. Its purpose will be to ensure that reindustrialization in France – one of Mr. Macron's priorities – takes place in a "green" manner amid a two-pronged energy and climate crisis and with the Covid-19 pandemic having exposed the country's dependence on certain strategic industries, such as semiconductors and health.
"We will engage France in a swift, massive, and planned green reindustrialization," Mr. Le Maire told journalists on Thursday during the ceremony, adding he wanted France to become a "leading decarbonized nation in Europe."
In doing so, the minister is conveniently connecting two cornerstones of Mr. Macron's second five-year term – reindustrialization and climate – just a few days after the president appeared to downplay global warming in his new year's eve television speech, sparking criticism.
The issue of companies relocating to France, after years of outsourcing, was thrown on the back burner following the war in Ukraine and the recent enactment of the United States' Inflation Reduction Act (IRA), expected to weaken Europe's attractiveness.
"This is what makes this majority government unique compared to the traditional parties," said Pascal Canfin, a member of the European Parliament with the liberal party Renew. "The right is not taking initiative on the environment while the left is not either when it comes to competitiveness."
'Top priority'
The bill will focus on five sections: taxation (modifying or creating measures to encourage "greener" research and development, industrial investment...), rehabilitating industrial wastelands (shortening of deadlines, simplification), "made in France" (the creation of a "green industry" label, use of public procurement), directing part of the €2.5 trillion euros in French savings toward industry (with the creation of a "green industry savings account") and developing skills (in nuclear and hydrogen, for instance, with a more inclusive approach destined to attract more women).
For the elaboration of this "top priority" bill, Mr. Le Maire said he wanted to draw inspiration from the "Pacte" law, a business growth and industry transformation legislation that came into force during the spring of 2019 after several months of consultation.
The Pacte law aimed at cutting red tape and making companies more competitive. "The groundwork for the bill needs to be completed by late March so it can be introduced in April and submitted to Parliament in June or July," the Finance Ministry said.
The chair of the economic affairs committee at the Assemblée Nationale, Guillaume Kasbarian, will coordinate the project but duos composed of a local elected official and a business leader will be responsible for steering each of the bill's sections.
For instance, Thierry Déau, founder and chief executive of Meridiam, an investment firm, will be in charge of tax matters with Mathieu Lefèvre, a member of the French Parliament with Renaissance, the liberal party founded by Mr. Macron.
'Industrial sovereignty'
However, given budgetary constraints, the bill has no intention of responding to the protectionist measures contained in the IRA, which will cost US taxpayers several hundred billion dollars.
"We are not going to jeopardize the recovery of our public finances," an official with the Finance Ministry said. The issue is more about the proper allocation of public resources and the use of savings." "There will be no fiscal big bang," warned a member of the French government.
Funds earmarked for the France 2030 strategic plan could also be reallocated if need be. "It's a unifying project, a common thread through two five-year presidential terms," said Mr. Kasbarian.
The politically proactive announcement also offers Mr. Le Maire an opportunity of regaining control over the issue of "industrial sovereignty." In 2021, he asked for the Finance Ministry to oversee the France 2030 plan, although it was eventually assigned to the prime minister's office.
His unexpected announcement on Wednesday was also an attempt to shift attention away from sectors hit hard by soaring energy prices, such as bakeries, restaurants and ski resorts. "We will not be returning to a policy of 'whatever it takes' for all professions. [That] would only add fuel to the fire of inflation," Mr. Le Maire said on Wednesday.
It remains to be seen what will come of the consultations. "It's a good idea to back a green and competitive industry. It will allow France to offer solutions to the rest of the world, unlike what happened with solar panels where we had to settle for bonds and subsidize products from China," Raphaël Trotignon, head of the energy-climate unit with research institute Rexecode, said.
He cautioned, however, of the risk of a glut of tools citing the bill on renewable energies, which MPs are due to adopt on January 10, a forthcoming bill on nuclear energy, the 2020 recovery plan as well as the France 2030 plan.