Open Love Letter V2

Open Love Letter V2
Photo by Anthony Choren / Unsplash

Fellow Citizens,

We write today not with empty promises but with a bold, transformative vision—one that reimagines France as a lean, agile, and innovative nation. For too long, our country has been weighed down by bureaucratic inefficiencies, excessive taxation, and an unsustainable fiscal model that limits our collective prosperity. The time has come to challenge the status quo and lay the foundation for a radical, yet responsible, restructuring of our economy.

France by the Numbers: The Economic Reality

France is a global powerhouse, yet our economic foundation is fragile. Our GDP stands at approximately €2.78 trillion, with a population of 67 million. However, our national debt has surpassed 115% of GDP, and we continue to operate at a deficit, with government spending outpacing revenues by over €150 billion annually. Public spending, at approximately €1.61 trillion, accounts for nearly 60% of GDP, making our government one of the most expensive in the world. Meanwhile, tax revenues of €1.45 trillion rely heavily on burdensome VAT, income tax, and corporate tax rates that stifle both economic dynamism and individual prosperity.

With an unemployment rate of 7.5-8%, rising social security costs, and an increasingly inefficient public sector, the urgency for reform has never been greater. Our current fiscal model is unsustainable, and unless we take decisive action, we risk economic stagnation, capital flight, and long-term decline.

The Vision: A Startup Approach to Governance

What if we ran France like a startup? Lean, transparent, and relentlessly focused on value creation. We propose a complete overhaul of the French economic model, reducing wasteful government expenditures, implementing radical transparency through blockchain, and restructuring taxation to unleash innovation and growth.

Key Pillars of Reform

1. A New Fiscal Discipline: Spending Only What We Earn

We propose a fundamental shift: government expenditures should never exceed revenues. This requires an immediate reduction in spending, prioritizing essential services while eliminating inefficiencies.

  • Target: Reduce central government spending by 70%, aligning expenditures with realistic revenue projections.
  • Strategy: Implement zero-based budgeting, obligating every government department to justify every euro spent.
  • Outcome: A streamlined government that delivers more value at a fraction of the current cost.

2. Tax Transformation: Lowering Rates to Increase Growth

Our taxation system is broken. It punishes hard work, discourages investment, and incentivizes capital to flee. We propose a radical simplification:

  • Personal Income Tax: Eliminated entirely.
  • VAT: Reduced from 20% to 5% across all sectors.
  • Corporate Tax: Cut from 25% to 9%, aligning with the most competitive global economies.

This transformation will:

  • Stimulate domestic spending and economic growth.
  • Make France the most attractive destination for businesses and high-net-worth individuals.
  • Increase disposable income for every household, strengthening the middle class.

Projected Revenues Under the New Model:

  • VAT at 5%: €70 billion
  • Corporate Tax at 9%: €13 billion
  • Social Security Contributions: €400 billion
  • Total Estimated Revenue: €490 billion

With targeted spending reductions, this revenue base can fully fund a lean, efficient government without reliance on excessive taxation.

3. Radical Transparency: A Blockchain-Powered Public Ledger

Every euro spent by the government should be visible to the public in real-time. We propose:

  • A National Blockchain Ledger displaying all government expenditures, accessible via a public dashboard.
  • AI-powered Audits to identify inefficiencies and prevent fraud.
  • Crowdsourced Fiscal Oversight, allowing citizens to flag wasteful spending.

This initiative will restore trust in government, reduce corruption, and ensure taxpayer money is spent efficiently.

4. Innovative Public-Private Partnerships (PPPs) to Replace Bureaucracy

Instead of bloated government programs, we propose a decentralized approach:

  • Healthcare: Shift to a hybrid model where universal basic coverage is supplemented by competitive private providers.
  • Education: Introduce voucher systems, allowing families to choose the best schools.
  • Infrastructure: Move from government-managed projects to PPPs that leverage private capital and innovation.

Impact on Everyday Citizens

Consider a middle-class family with a net income of €50,000:

  • Currently, they pay €15,000 in income tax and €5,000 in VAT.
  • Under our new system, they would save €18,500 annually even after modest increases in private spending on essential services.

Small businesses would benefit from reduced corporate taxes, fostering entrepreneurship and job creation.

A Phased Roadmap to Implementation

Phase 1 (0-1 Year): Immediate Actions

  • Launch independent fiscal audits to cut 30% of non-essential spending.
  • Begin pilot projects for the public blockchain dashboard.
  • Introduce legislation to phase in new tax structures.
  • Host nationwide fiscal hackathons to crowdsource innovative solutions.

Phase 2 (1-3 Years): Transition & Optimization

  • Fully implement new tax and spending structures.
  • Digitize and restructure government services, cutting 15-20% of operational costs.
  • Scale up public-private partnerships in healthcare, education, and infrastructure.
  • Expand blockchain tracking to all government transactions.

Phase 3 (3-5 Years): Long-Term Sustainability

  • Establish France as the global leader in business-friendly tax policy.
  • Institutionalize performance-based budgeting.
  • Launch decentralized governance initiatives, including citizen-voted fiscal policies.
  • Build a sovereign wealth fund to stabilize public finances.

The Choice Before Us

The old system is broken. We can continue down a path of excessive taxation, bloated bureaucracy, and mounting debt, or we can embrace a bold new vision—one that prioritizes efficiency, innovation, and individual prosperity.

France has always been a nation of pioneers, from the Enlightenment to the digital age. Now, we must pioneer a new economic model that places citizens first, government second.

We call upon entrepreneurs, technologists, economists, and visionaries to join us in shaping this transformation. The future is ours to build.

Vive la France—leaner, stronger, and freer than ever before.