2024-11-04 20:00:00
Minister of Budget and Public Accounts Laurent Saint-Martin and Minister of Economy and Finance Antoine Armand on October 31, 2024 at the ELysée, in Paris. BERTRAND GUAY / AFP
The National Assembly approved on Monday, November 4, with the votes of the left, a profoundly revised version of the “revenue” part of the 2025 Social Security budget, against the opposition of Macronist and right-wing deputies who voted against. The amended text, which notably provides for 17 to 20 billion additional contributions according to the deputies, was approved by 126 votes « pour » et 98 ” against “. The Assembly will thus be able to begin examining the “expenses” part of the text in the evening.
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By notably increasing contributions on capital income or dividends, the left has “reasonably released (…) a level of financing for social protection and social security commensurate with needs”welcomed the socialist Jérôme Guedj.
The elected officials of “base” government have castigated a text “emptied of its meaning and of all seriousness, political and budgetary”as summarized by François Gernigon (Horizons). “You have created taxes and charges for nearly 17 billion”lamented Thibault Bazin (LR) while addressing the elected officials of the New Popular Front (NFP). “And there, the victims are not the wealthy, it is the working middle classes”he said, castigating a text which “no longer looks like anything”.
Tacit support of the RN
“The debacle is complete for the government! We have transformed the revenue part of the Social Security budget in the service of redistribution and sharing of wealth”greeted on LFI MP Clémence Guetté, who chaired the session. “There is a majority to govern on the basis of the program of the New Popular Front”, rejoiced his colleague from the North, Aurélien Le Coq.
To obtain this favorable vote, the New Popular Front had to count on the abstention of the National Rally. The RN, which had criticized the government’s initial text, also denounced “the tax madness that the left has imposed”. But he chose to abstain so as not to prematurely end the debates – the rejection of the party ” recipes “ would in fact have led to that of the entire text.
This tacit support from the RN notably allowed the left to win, a little earlier, a symbolic victory on the pension reform, with the adoption of amendments opposing the reform.
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These socialist, rebellious and communist amendments, adopted by 178 votes to 76, modify an annex to the text, by repealing the increase in the legal retirement age from 62 to 64 years. “Let’s go for the symbol, we are going to vote on this amendment”announced the RN deputy Matthias Renault. Budget Minister Laurent Saint-Martin invited the PS not to sink “in demagoguery through this amendment”. “Instead, support those who are responsible in this matter by reducing our public deficits”he said.
“Today is a first symbolic step”underlined the LFI deputy Manuel Bompard, by meeting with the deputies on November 28, for the examination of a proposed LFI law also proposing to repeal the reform, which will have a chance of passing.
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**Interview with Minister of Budget and Public Accounts Laurent Saint-Martin**
**Interviewer**: Thank you for joining us today, Minister Saint-Martin. The National Assembly recently passed a revised version of the 2025 Social Security budget. Can you explain the significance of this approval, especially regarding the additional contributions?
**Laurent Saint-Martin**: Thank you for having me. The approval of this revised revenue part is very significant as it represents a necessary adjustment to ensure the sustainability of our social security system. By increasing contributions on capital income and dividends, we are creating a financial base that adequately meets the needs of our social protection efforts. This is about ensuring that we fund crucial services while being fair in our approach.
**Interviewer**: However, there seems to be considerable opposition from both the Macronist and right-wing deputies. They argue that these additional taxes unfairly burden the working middle class. How do you respond to those criticisms?
**Laurent Saint-Martin**: It’s important to frame this discussion around the concept of social justice. While we understand the concerns regarding middle-class burdens, the reality is that ensuring increased contributions from those who can afford it creates a more equitable system. We are taking necessary steps to address our budgetary challenges while safeguarding our social services.
**Interviewer**: The left has positioned this move as a victory for wealth redistribution. Do you see this as a compromise or a fundamental shift in the government’s stance towards fiscal policy?
**Laurent Saint-Martin**: I believe it’s both. We recognize the need for fiscal responsibility while also ensuring that our policies support those who need it most. This isn’t just a shift; it reflects our ongoing commitment to balance fiscal prudence with social equity.
**Interviewer**: Lastly, with this new budget in place, what are the next steps for the government in terms of expenditures?
**Laurent Saint-Martin**: The next phase involves carefully evaluating and approving the expenditure part of the budget. We need to ensure that while we cut back on certain spending, we are also investing in areas that will enhance our social services and support the economy. Our goal is to strike a balance that promotes growth and social stability.
**Interviewer**: Thank you, Minister Saint-Martin, for your insights. It’s a challenging time for the French government, and your role is crucial in navigating these financial waters.
**Laurent Saint-Martin**: Thank you for having me. It’s indeed a pivotal moment, and we are committed to making the right choices for the future of France.
