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Bernard Arnault, CEO of LVMH, strongly reaffirmed his opposition to the growing intervention of the state in management of private companies. This criticism casts light on a key debate in France on the limits of state role in the economic context already awarded by international tension and disputed tax elections.
In short
- Bernard Arnault criticizes the growing state intervention in business business.
- Bernard Arnault warns against fiscal surcharges from the budget 2025, which could support relocation and weaken the French economy.
- This situation creates a key debate on the balance between state regulation, freedom of business and economic impact.
Bernard Arnault condemns state interventions in business management
Bernard Arnault, interviewed in the Senate on the call for economic patriotism, which was initiated by Emmanuel Macron, who completely destroyed France, assessed that the intervention of the state in operational companies was ” very bad And leads to a disaster. For him, this interference disrupts the strategic decision -production, weakens competitiveness and weakens economic dynamics.
This position underlines a deep fracture in France between the government and large companies that require more freedom to adapt to global challenges. The head of LVMH is therefore against the government’s court order to suspend French investment in the United States in the face of American customs.
LVMH has several workshops across the Atlantic for decades, a defensive strategy that Arnault considers as an asset. This international device allows him to resist economic uncertainty, as shown by the good resistance that LVMH shows in the first quarter of 2025. This, despite:
- 3 % decrease in turnover in the first quarter of 2025;
- Remarkable contractions in segments of wine and spirits (-9 %) and fashion and leather goods (-5 %).
Arnault believes that forcing companies to reduce its international equipment would be counterproductive. In addition, it would damage their growth in a globalized context.
France: taxation and surcharge – risk levers that can slow down the economy
Bernard Arnault has already criticized the tax measures set out in the budget 2025! Especially a surcharge focused on large companies. In this tax pressure, he sees a factor encouraging the relocation with the harmful impacts on the attraction and possibly the economy of France.
French tax measures expected in the budget 2025, in particular a surcharge for large companies, are an incentive for relocation.
Planned Risks of Surcharge:
- Increase production costs;
- Reduce business margins;
- Encourage the search for more favorable jurisdictions.
This fiscal pressure associated with the interference of the state can speed up the relocation and cause:
- Losses of industrial jobs;
- A decline in national competitiveness.
The luxury sector, the pillar of the French economy, perfectly illustrates these risks. Therefore, regulatory uncertainty slows investments, threatens the sustainability of the industry and negatively affects employment and business balance. In addition, this break could get companies and individuals to turn to alternative assets such as bitcoins. The royal crypto is perceived as a reserve of decentralized values in the face of economic risks.
Bernard Arnault illustrates the main challenge: alignment of the state and regulation of freedom in an unstable economy. Will France be able to find a balance between control and innovation? This debate intensifies, while some evoke the possibility of the state to demand the savings of the French to provoke public debt and raise new questions about the limit of state intervention.
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The world is evolving and adaptation is the best weapon that survives in this undulating universe. I am interested in everything about blockchain and its derivatives. To share my experience and promote an area that fascinates me, nothing better than writing informative and relaxed articles simultaneously.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.