2024-08-31 14:51:12
On August 20, in order to “ensure national continuity”, Prime Minister Gabriel Attal set credit limits for ministries until 2025 in a “ceiling letter” to the resigning ministers so that they could start preparing their budgets. The Context letter, published this weekend, cuts Green Fund credits by €1.5 billion and vehicle electrification credits by €1 billion.
“The guidelines mentioned do not guarantee effective financing of the ecological transition”
The budget of the Ecological Transition Agency (Ademe) dedicated to communities and businesses will increase from 1.373 billion euros to 900 million euros, in particular at risk of slowing down renewable heat development and waste prevention projects. “The guidelines mentioned do not guarantee effective financing of the ecological transition and the minister’s office will obviously have the opportunity to express its opposition to these financing assumptions,” the source in the ministry continued.
Matignon clarified on Saturday that in the cap letter mentioned, the budget of the Ministry of Ecological Transition and Territorial Cohesion has increased by a total of 2.8 billion euros. Regarding the Green Fund, Matignon stressed that the payments made by the State to local authorities will increase by 340 million euros by 2025. The reduction of 1.5 billion euros concerns projects planned over a few years.
In the electrification of vehicles, the drop is 500 million euros, with a budget of 1 billion euros for 2025 compared to 1.5 billion euros for 2024. Energy efficiency certificates will make it possible to finance an additional 100 million euros, according to Matignon. Combining all ministries, the cap letter copies the 2024 expenditure (492 billion euros) to the nearest euro for 2025, which, according to Matignon, would save about 10 billion euros, just by not pegging it to the predictable inflation rate of 2% next year.
Matignon said this spending level was “reversible” because the new government could adjust it as it wished before the October 1 deadline for submitting the 2025 budget or during the discussion of the finance bill in parliament.
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