As French President Emmanuel Macron prepares to carry his first huge rally Saturday in his race for re-election, his marketing campaign has hit a roadbump.
It’s been dubbed “the McKinsey Affair,” named after an American consulting firm employed to advise the French authorities on its COVID-19 vaccination marketing campaign and different coverage. A brand new French Senate report questions the federal government’s use of personal consultants, and accuses McKinsey of tax dodging. The problem is mobilizing Macron’s rivals and dogging him at marketing campaign stops forward of the April 10 first-round vote.
His supporters hope he can rev up his marketing campaign and drown out his detractors at Saturday’s rally in an enormous enviornment west of Paris. Macron, a centrist who has been within the forefront of diplomatic efforts to finish the battle in Ukraine, has a snug lead in polls to this point over far-right chief Marine Le Pen and different challengers.
However the phrase “McKinsey” is changing into a rallying cry for these attempting to unseat him. Critics describe the federal government’s 1 billion euros in spending on consulting corporations like McKinsey final yr as a type of privatization and Americanization of French politics, and are demanding extra transparency.
The French Senate, the place opposition conservatives maintain a majority, revealed a report final month investigating the federal government’s use of personal consulting corporations. The report discovered that state spending on such contracts has doubled up to now three years regardless of blended outcomes, and warned they might pose conflicts of curiosity. Dozens of personal corporations are concerned within the consulting actions, together with giants like Eire-based multinational Accenture and French group Capgemini.
Most damningly, the report says McKinsey hasn’t paid company revenue taxes in France since at the very least 2011, however as a substitute used a system of “tax optimization” by means of its Delaware-based dad or mum firm.
McKinsey issued an announcement saying it “respects French tax guidelines that apply to it” and defending its work in France, however didn’t elaborate.
McKinsey notably suggested the French authorities on its COVID vaccination marketing campaign, which bought off to a halting begin however ultimately turned among the many world’s most complete. Exterior consultants have additionally suggested Macron’s authorities on housing reform, asylum coverage and different measures.
The Senate report discovered that such corporations earn smaller revenues in France than in Britain or Germany, and famous that spending on exterior consultants was increased beneath conservative former President Nicolas Sarkozy than beneath Macron.
Finances Minister Olivier Dussopt stated the state cash spent on McKinsey was about 0.3% of what the federal government spent on public servants’ salaries final yr, and that McKinsey earned solely a tiny fraction of it. He accused marketing campaign rivals of inflating the affair to spice up their very own rankings.
“We’ve nothing to cover,” stated Amelie Montchalin, the federal government’s minister for public service.
The affair is hurting Macron nonetheless.
A former funding banker as soon as accused of being “president of the wealthy,” Macron noticed his rankings resurge when his authorities spent massively to guard staff and companies early within the pandemic, vowing to do “no matter it takes” to cushion the blow. However his rivals say the McKinsey affair rekindles issues that Macron and his authorities are beholden to non-public pursuits and out of contact with the issues of odd voters.
In all places Macron goes now, he’s requested about it.
“The marketing campaign needs to be about buying energy, easy methods to settle safety issues, easy methods to finish the battle (in Ukraine),” he instructed voters Thursday. “Don’t make it a couple of false difficulty.”
On a chat present final Sunday, he stated defensively, “If there may be proof of manipulation, allow them to take it to courtroom.”
A lady who misplaced her father to COVID-19 filed a lawsuit Friday accusing McKinsey and different consulting corporations of misusing public cash after they have been employed to advise the federal government on masks and vaccine provides. Julie Grasset now runs a assist group for individuals who misplaced family members within the pandemic.
“It’s a severe difficulty. We’re speaking about public well being,” Grasset instructed The Related Press.
The monetary prosecutor’s workplace didn’t remark. It may take weeks for prosecutors to resolve whether or not to take up the case, one among a number of Grasset and others have filed involving the federal government’s dealing with of the pandemic.