Press release – Relaxation of the JEI reform

Paris, December 5, 2011. During the examination of the Amending Finance Bill on Friday December 2, French MPs voted in favor of an overhaul of the Young Innovative Company (Jeune Entreprise Innovante) scheme, which was undermined in the last Finance Bill by the introduction of restrictive ceilings and a degressive reduction in social security exemptions for these companies. This scheme, widely used and acclaimed by start-ups, is at the origin of “nuggets” that create value and jobs throughout France.

While the Senate had voted the previous week for a full return to the pre-cutting system, the French deputies on Friday made the reform more flexible by raising the aid ceilings and reviewing the degressivity conditions for a smoother exit from the system. The total cost to public finances is estimated at 20 million euros.The total cost to the public purse is estimated at 20 million euros. For the JEI, the legislative episode is not over, since the Commission Mixte Paritaire (CMP) will have to give its opinion on the Senate’s position in the next few days, and bring to a close the debate to which the AFDEL, the SNJV and Syntec numérique have been contributing for several months.

The digital industry’s professional organizations are calling on the Government to support this relaxation, which also respects the word of the Head of State, who called the reform “a wasted bullet” in the planer, and point out that regulatory stability is a sine qua non for these young companies to be able to validate their business plans. Finally, they invite the government to consider the very positive impact of these companies on growth, given the cost of this relaxation, estimated at 20 million euros…