On July 28, French power large TotalEnergies introduced greater than €17.7 billion in revenue ($18.8 billion) within the first half of 2022, a three-fold improve over the identical interval final 12 months. The company has invoked elevated oil and gasoline costs pushed by the NATO-Russia struggle in Ukraine to justify an enormous spike in gas costs. In actuality, it’s utilizing the Ukraine disaster to extract billions from the pockets of staff in France and internationally.
This phenomena shouldn’t be restricted to only Whole or France. A number of oil and power companies posted document income within the second quarter of 2022. In simply three months, ExxonMobile made income of $17.9 billion, Chevron $11.6 billion, and Shell Oil $11.6 billion.
The 6.1 % inflation fee recorded in France on the finish of July is the best ever. Gasoline costs have been one of many principal drivers of rising prices. Nationwide averages for petrol costs peaked at €2.12 per liter in early June earlier than reaching €1.85 per liter firstly of August, a rise of €0.30 from a 12 months in the past.
Though French president Emmanuel Macron demagogically denounced “struggle profiteers” who would search to make use of the struggle in Ukraine to extend income at June’s G7 assembly, his authorities is giving its full assist to Whole’s struggle profiteering.
In a Senate debate, as a movement to position a pitiful “distinctive solidarity contribution” on Whole’s document income was rejected, Economic system and Finance Minister Bruno Le Maire defended Whole. He mentioned that companies additionally “bear the burden of inflation,” claiming that the “greatest method for an organization to [aid society] is to not be taxed, however to extend the salaries of its workers.”
Each claims are preposterous. Whole’s year-on-year revenue improve of over 300 % within the first six months of 2022 is 50 occasions bigger than France’s 6.1 % inflation fee. In the meantime, Whole Power has not elevated staff’ salaries by a cent regardless of inflation; since 2020, the company has minimize 6,500 jobs internationally, together with 1,100 in France.
Analyzing Whole’s “tremendous income” and tax evasion practices, economist Maxime Combes explains how its “income are rising in any respect levels of its manufacturing course of, with out the company having to vary something in its manufacturing course of.” That’s, Whole’s document income are pushed routinely by the rise of oil on world monetary markets. Moreover the elevated exploitation of its workforce by refusing to grant them raises as costs surge, it has not taken any motion to acquire these windfall income.
Whole’s document 2022 income observe its “tax optimization” coverage, widespread with most multinational companies working in France, the place they declare engineered losses in France whereas having fun with billions in revenue in international locations with decrease tax charges. Because of this, Whole has not paid a single euro in French company tax within the final 24 months resulting from losses in 2020 (though it nonetheless paid out €7.6 billion to its shareholders in that 12 months).
To placate rising widespread anger over blatant price-gouging of the inhabitants, Whole executives promised an insulting 20-centime discount in gas costs from September 1 to November 1. With their pockets already filled with ill-gotten billions, Whole’s executives and shareholders will stroll away massively enriched regardless of this pitiful measure.
There isn’t any indication that client gas and power costs or Whole’s document income will decline anytime quickly. In response to the Worldwide Power Company (IEA), power multinationals may see “extra income of as much as €200 billion within the European Union in 2022.” In response to Combes, this might see Whole’s personal income reaching €35 billion for the 12 months.
Whole shouldn’t be the one company funneling billions in income to shareholders while the nice mass of the inhabitants suffers amid the pandemic, runaway inflation, and the financial fallout of the struggle between NATO and Russia in Ukraine.
Final week, companies listed on the CAC-40 Paris inventory market introduced a document €174 billion in income in 2021, over double the €80 billion recorded in 2019 earlier than the COVID-19 pandemic. That is nearly double the document income of €100 billion recorded in 2007, on the eve of the 2008 monetary meltdown.
Alongside Whole, probably the most worthwhile companies have been the Vivendi media group, which revamped €24.6 billion; and luxurious group LVMH, owned by France’s richest man Bernard Arnault, which made €12.7 billion.
Regardless of the automotive trade being plagued with a semi-conductor scarcity for over three years, automaker Stellantis, which operates a number of factories in France, posted income of €18 billion in 2021, a 34 % improve on the earlier 12 months.
Alongside Whole, company income are persevering with to surge in 2022 regardless of document inflation, the financial impacts of the struggle in Ukraine, and warnings of an impending recession in France and all through the eurozone. Within the first quarter, LVMH introduced a revenue of €6.5 billion within the first quarter of 2022, a 23 % improve on 2021. Stellantis reported income of €8 billion for the primary six months of the 12 months.
Throughout the globe, the ruling class is appearing on the motto “by no means let a superb disaster go to waste.” Following the primary, and to this point solely correct lockdown in opposition to COVID-19, in Could 2020 European companies have been bailed out for lots of of billions of {dollars} with the approval of the CGT and different Franco-German unions.
Alongside the implementation of a back-to-work coverage, which has led to tens of millions of deaths and a number of waves of the virus, this created the situations for an enormous surge within the inventory market, document company income, and an unprecedented improve within the wealth of the super-rich. Amid rising inflation, the struggle in Ukraine, and an impending recession, this course of is simply accelerating.
Each internationally and in France, the ruling class has by no means had it so good. In only one telling instance, throughout the pandemic and accompanying financial disaster, France’s richest man, Bernard Arnault, has seen his wealth greater than double from $76 billion in 2020, to $166 billion on August 1, 2022, in response to Forbes wealth tracker.
Alternatively, the working class is dealing with rising prices, alongside cuts to already grossly insufficient social assist. In response to inflation, the Macron authorities handed a 4 % improve in retirement pensions and household allowances, an efficient minimize given the 6.1 % inflation fee.
Although Whole’s income are extensively considered with outrage and disgust, no main social gathering has proposed any measure that questions, not to mention threatens, the flexibility of company executives to horde billions. Had the political theatre of the dead-on-arrival “solidarity contribution” handed the Nationwide Meeting and Senate, it might have been not more than a drop within the bucket of the lots of of billions funneled to the super-rich yearly.
As is the case with the tremendous income of oil corporations the world over, Whole’s skill to carry the complete inhabitants to ransom for gas, and run away with billions, displays the truth of sophistication rule in France. Capitalist governments ruthlessly defend the unimaginable wealth of the super-rich whereas social distress grows amongst working individuals. This corrupt regime can solely be overturned by the institution of staff’ energy and socialism, and the tip of the anarchic revenue system.
