Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

French president Macron's reelection push troubled by 'McKinsey Affair'

French president Macron's reelection push troubled by 'McKinsey Affair'

A new French Senate report questions the government’s use of private consultants, and accuses McKinsey of tax dodging.
As French President Emmanuel Macron prepares to hold his first big rally Saturday in his race for reelection, his campaign has hit a road bump.

It’s been dubbed “the McKinsey Affair,” named after an American consulting company hired to advise the French government on its COVID-19 vaccination campaign and other policy. A new French Senate report questions the government’s use of private consultants, and accuses McKinsey of tax dodging. The issue is mobilizing Macron’s rivals and dogging him at campaign stops ahead of the April 10 first-round vote.

His supporters hope he can rev up his campaign and drown out his detractors at Saturday’s rally in a huge arena west of Paris. Macron, a centrist who has been in the forefront of diplomatic efforts to end the war in Ukraine, has a comfortable lead in polls so far over far-right leader Marine Le Pen and other challengers.

But the word “McKinsey” is becoming a rallying cry for those trying to unseat him. Critics describe the government’s 1 billion euros in spending on consulting firms like McKinsey last year as a sort of privatization and Americanization of French politics, and are demanding more transparency.

The French Senate, where opposition conservatives hold a majority, published a report last month investigating the government’s use of private consulting firms.

The report found that state spending on such contracts has doubled in the past three years despite mixed results, and warned they could pose conflicts of interest. Dozens of private companies are involved in the consulting activities, including giants like Ireland-based multinational Accenture and French group Capgemini.

Most damningly, the report says McKinsey hasn’t paid corporate profit taxes in France since at least 2011, but instead used a system of “tax optimization” through its Delaware-based parent company. McKinsey issued a statement saying it “respects French tax rules that apply to it” and defending its work in France, but didn’t elaborate.

McKinsey notably advised the French government on its COVID vaccination campaign, which got off to a halting start but eventually became among the world’s most comprehensive. Outside consultants have also advised Macron’s government on housing reform, asylum policy and other measures.

The Senate report found that such firms earn smaller revenues in France than in Britain or Germany, and noted that spending on outside consultants was higher under conservative former President Nicolas Sarkozy than under Macron.

Budget Minister Olivier Dussopt said the state money spent on McKinsey was about 0.3% of what the government spent on public servants’ salaries last year, and that McKinsey earned only a tiny fraction of it. He accused campaign rivals of inflating the affair to boost their own ratings.

“We have nothing to hide,” said Amelie Montchalin, the government’s minister for public service.

The affair is hurting Macron nonetheless.

A former investment banker once accused of being “president of the rich,” Macron saw his ratings resurge when his government spent massively to protect workers and businesses early in the pandemic, vowing to do “whatever it takes” to cushion the blow. But his rivals say the McKinsey affair rekindles concerns that Macron and his government are beholden to private interests and out of touch with the concerns of ordinary voters.

Everywhere Macron goes now, he’s asked about it.

“The campaign should be about purchasing power, how to settle security problems, how to end the war (in Ukraine),” he told voters Thursday. “Don’t make it about a false issue.” On a talk show last Sunday, he said defensively, “If there is proof of manipulation, let them take it to court.”

A woman who lost her father to COVID-19 filed a lawsuit Friday accusing McKinsey and other consulting companies of misusing public money when they were hired to advise the government on mask and vaccine supplies. Julie Grasset now runs a support group for people who lost loved ones in the pandemic.

“It’s a serious issue. We are talking about public health,” Grasset told The Associated Press.

The financial prosecutor’s office did not comment. It could take weeks for prosecutors to decide whether to take up the case, one of several Grasset and others have filed involving the government’s handling of the pandemic.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×