France has the highest tax burden in Europe

World champion in the summer and now European champion in the fall. As in football, the tricolor team brings home the cup in terms of taxes: it is in France that the tax pressure was the highest in Europe in 2017, according to Eurostat statistics unveiled on Wednesday. Tax revenues (which combine taxes and net social contributions) accounted for 48.4% of GDP last year. A level up from 2016 (47.7%), where France was already in the lead. It is true that the acceleration of growth in 2017 has particularly filled the coffers of the state.

The much lower European average

To complete the podium behind France, we find Belgium gaining a place compared to the previous year (the rate is 47.3% of GDP) and Denmark downgraded by one place (46.5%) . Two other Scandinavian countries follow (Sweden and Finland (44.9% and 43.4%) .The French rate is significantly higher than that of the European Union at twenty-eight (40.2%) and that of the European Union. Eurozone (41.4%) Again, these European averages are higher than those of 2016, inflated by growth that blew stronger on the Old Continent last year.

Among the "big" countries of the Union, Germany emerges at a tax revenue rate representing 40.5% of the national wealth, against 42.4% for Italy, 35.4% for the United Kingdom and 34.5% for Spain. Often accused of unfair tax competition, Ireland stands out with a rate of 23.5%, the lowest in Europe.

Highest level of social contributions

The data collected by the European Statistical Office also shed light on the choices made by each of the States in terms of economic policy. France stands out with the highest level of social contributions in Europe – Emmanuel Macron's famous "crazy mango" – 18.8% of GDP that comes to finance the very redistributive French social system. Germany is relatively close at 16.7%. Sweden, whose reputation of the social system is second to none, has chosen another path, with a low contribution rate more than offset by that of taxes on the incomes of natural persons (15.8% of GDP, against 8.7% in France). By offsetting the decline in employee contributions by increasing the CSG, Emmanuel Macron has moved closer to this Nordic model.

Finally, taxes on production and imports are also high in France (16.4%), especially when compared to those in Germany (10.7%).

Acceleration of tax cuts

These statistics have a particular resonance in full movement of "yellow vests". This reflects a crisis of consent to tax according to Emmanuel Macron, who said Tuesday think about an acceleration of tax cuts. Until now, its promise was to reduce the tax rate (an indicator slightly different from that of Eurostat, since it does not include certain receipts such as contributions to mutuals) from 45.3% of GDP in 2017 to 44.5% of GDP in 2022. To further reduce this indicator further, it will be necessary to make an additional effort on public spending, warned the head of state.

Renaud Honoré