1 00:00:02,520 --> 00:00:08,760 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Emmanuel Macron's gift to 2 00:00:08,840 --> 00:00:10,760 Speaker 1: choose who he wants to lead his next government, and 3 00:00:10,800 --> 00:00:13,480 Speaker 1: the question is what will that mean for the country's 4 00:00:13,480 --> 00:00:15,920 Speaker 1: economy and for the prospects of passing a budget. Let's 5 00:00:15,920 --> 00:00:18,840 Speaker 1: discuss now with Fabrius Lesachet, who's the vice president of 6 00:00:18,840 --> 00:00:22,000 Speaker 1: France's biggest business lobby, MEDEF. Fabri's good to talk to 7 00:00:22,000 --> 00:00:24,720 Speaker 1: you again on Bloomberg Radio. Thanks for joining us this morning. 8 00:00:25,480 --> 00:00:29,640 Speaker 1: I mean, how passive, mister, are you about the future now? 9 00:00:29,680 --> 00:00:31,960 Speaker 1: Given that we've gone through another prime minister. We're heading 10 00:00:32,000 --> 00:00:35,080 Speaker 1: for number seven under Emmanuel Macron. Do you think that 11 00:00:35,200 --> 00:00:38,040 Speaker 1: he can find anyone who can do better? 12 00:00:39,200 --> 00:00:42,239 Speaker 2: I don't know about this. You know, for us, the 13 00:00:42,640 --> 00:00:46,760 Speaker 2: identity of the prime minister is not the main The 14 00:00:46,880 --> 00:00:51,919 Speaker 2: important part is are we able to find compromise, political 15 00:00:51,960 --> 00:00:56,560 Speaker 2: compromise to support for business policy and to carry on 16 00:00:56,640 --> 00:00:59,840 Speaker 2: the reforms that are much needed and change the cure 17 00:01:00,200 --> 00:01:06,679 Speaker 2: of the debt which is now skyrocketing, putting in danger 18 00:01:08,319 --> 00:01:11,840 Speaker 2: the country because the interest rate go up and also 19 00:01:12,840 --> 00:01:16,720 Speaker 2: the cost of paying all these refinancing. All this and 20 00:01:17,600 --> 00:01:20,520 Speaker 2: at some point we will pay one hundred billion in 21 00:01:20,560 --> 00:01:23,959 Speaker 2: one or two years. The forecast that wonticipit is that 22 00:01:24,000 --> 00:01:26,560 Speaker 2: will pay one hundred billion euro year or just for 23 00:01:26,600 --> 00:01:30,320 Speaker 2: the debt interest. This is not lasting, this is not sustainable. 24 00:01:31,200 --> 00:01:34,479 Speaker 2: We need money for something else, for investments. We need 25 00:01:34,480 --> 00:01:37,840 Speaker 2: also to drop down the tax. We need to revise 26 00:01:37,920 --> 00:01:41,920 Speaker 2: very seriously the social spending. We know that two thirds 27 00:01:41,920 --> 00:01:45,640 Speaker 2: of the debt comes from pension and comes from social spending, 28 00:01:45,720 --> 00:01:48,200 Speaker 2: and we know what we need to do. So that's 29 00:01:48,240 --> 00:01:49,200 Speaker 2: the main point. 30 00:01:49,600 --> 00:01:51,280 Speaker 1: For preseos with the masters. Of course that we heard 31 00:01:51,320 --> 00:01:53,720 Speaker 1: loud and clear from the last two prime ministers. They 32 00:01:53,720 --> 00:01:56,560 Speaker 1: didn't have any success in addressing any of those issues. 33 00:01:56,760 --> 00:01:58,840 Speaker 1: Do you think that the socialist prime minister could make 34 00:01:58,920 --> 00:02:01,480 Speaker 1: things better or worse for business? 35 00:02:02,720 --> 00:02:05,320 Speaker 2: Not at all when you read if it's based on 36 00:02:05,360 --> 00:02:09,799 Speaker 2: the socialist program, it will be a catastrophe because they 37 00:02:09,880 --> 00:02:12,799 Speaker 2: want to do like in the UK and even worse 38 00:02:13,360 --> 00:02:17,760 Speaker 2: tax on capital game, which will be an open door 39 00:02:17,960 --> 00:02:23,560 Speaker 2: to escape the countries for pats of wealth, for hoppreneurs, 40 00:02:23,600 --> 00:02:26,399 Speaker 2: for business people, and this is not what we want. 41 00:02:26,440 --> 00:02:30,160 Speaker 2: We want to welcome entrepreneurs in this country because if 42 00:02:30,160 --> 00:02:32,120 Speaker 2: we need to repay the debt, we can only do 43 00:02:32,200 --> 00:02:37,560 Speaker 2: it with growth, with added value with revenues, with profits, 44 00:02:37,600 --> 00:02:42,160 Speaker 2: and not by getting the countries more poor. So no, 45 00:02:42,320 --> 00:02:45,120 Speaker 2: it will be a catastrophe. But the Socialist cannot rule 46 00:02:45,160 --> 00:02:48,519 Speaker 2: the country without a compromise with the other political parties, 47 00:02:48,560 --> 00:02:51,440 Speaker 2: so we will need to see. But of course it 48 00:02:51,480 --> 00:02:53,640 Speaker 2: will be a bad signal, that's for sure. 49 00:02:54,200 --> 00:02:57,840 Speaker 1: Fabrius, what's the danger in the interim period when we're 50 00:02:57,880 --> 00:03:01,840 Speaker 1: in another uncertain period for French pol Arguably nothing's really 51 00:03:01,880 --> 00:03:05,840 Speaker 1: been achieved in the past two years. What does that 52 00:03:05,960 --> 00:03:08,400 Speaker 1: mean for your members? What does that mean for business 53 00:03:08,400 --> 00:03:09,200 Speaker 1: in France? Now? 54 00:03:10,160 --> 00:03:14,000 Speaker 2: In fact they have achieved. One thing is unstability, which 55 00:03:14,040 --> 00:03:17,239 Speaker 2: is not good for business because when you cannot obviously 56 00:03:17,320 --> 00:03:22,560 Speaker 2: plan and expect something a bit stable, you don't invest. 57 00:03:22,600 --> 00:03:25,840 Speaker 2: And when you see the growth in France which was 58 00:03:26,680 --> 00:03:29,440 Speaker 2: zero point three percent in the second quarter, a bit 59 00:03:29,520 --> 00:03:31,880 Speaker 2: more than the expectation, but still low, it does not 60 00:03:32,080 --> 00:03:37,480 Speaker 2: rely at all on private investment or consumption. The savings 61 00:03:37,520 --> 00:03:41,520 Speaker 2: are skyrocketing, the investment is very low. That showed no 62 00:03:41,640 --> 00:03:46,600 Speaker 2: confidence from consumers and corporations, and the growth is only 63 00:03:46,680 --> 00:03:51,600 Speaker 2: based on a technical storage stock. So this is not 64 00:03:52,080 --> 00:03:55,520 Speaker 2: a good sign and the outlook is not very positive. 65 00:03:56,640 --> 00:03:59,720 Speaker 2: If you add on that the tariffs from the US 66 00:03:59,720 --> 00:04:03,000 Speaker 2: and the work capacity from China, the stakes are very high. 67 00:04:03,400 --> 00:04:06,560 Speaker 1: Okay, fabrus asashe vice president of French business OP Group, 68 00:04:06,560 --> 00:04:08,160 Speaker 1: madef thank you very much for joining us.