Government Forces Through Contested Budget Amendments in the Often Peaceful Senate
The usually serene atmosphere in the French Senate was shattered on Sunday afternoon as the government enforced a second deliberation on around twenty articles of the finance bill, a move immediately criticized by the opposition as a “coup de force.” This came just hours after the Senate adopted a slew of amendments to the government’s draft budget.
A Bold Move Sparks Outrage
The government didn’t wait long to unveil its counteroffensive. Over the following two hours, a cascade of about 200 amendments aimed at removing key Senate-approved measures was introduced. These included the elimination of increases in the “flat tax”, the “exit tax”, gas excise duties, a proposed “Gafam” tax, and other measures, effectively rewriting the tentative budget section on revenue.
“The government is rewriting the text however it pleases, even though it’s in the minority in a chamber that typically supports it,” declared socialist senator Thierry Cozic. Calling the government’s actions a “sore loser reflex,” Cozic led his group out of the session, refusing to participate in the upcoming votes.
“What happened is utterly abnormal and deeply concerning,” added Claude Raynal, president of the Senate Finance Committee. “This gives the impression that the government is overstepping its bounds in an already fraught political environment.”
However, the accusations of abuse of power did not faze the government. “I’d rather put forth more amendments in the second deliberation than see negotiations occur backstage in a committee,” declared Laurent Saint-Martin, Minister of Public Accounts, justifying the unexpected maneuver.
Budgetary Realignments and Diverging Ideologies
While the government had hoped for a less radical approach from the right and center majority in the Senate, senators proved more independent than anticipated. The nearly 500 amendments adopted resulted in a significant hike in the projected deficit, rising to 5.5% of GDP in 2024, half a percentage point higher than the government’s initial target of 5%.
“This is simply unacceptable,” argued Saint-Martin towards the Senate. “We need to do everything we can to return to our target deficit.”
But the budgetary concerns weren’t the only driver behind the government’s intervention. The proposed Senate amendments were seen as detrimental to the purchasing power of French citizens and to the competitiveness of businesses.
The government’s goal in revising the budget was two-fold: correcting the looming deficit and realigning the environment favouring investment. “The government’s objective is not solely focused on budgetary balance, but on ideological alignment,”
summarises Claude Raynal.
To achieve these goals, the government, while keeping the deficit at 5.4% of GDP alongside maintaining its objective of 5% by 2025, also made significant policy changes.
Savings on the Horizon
An updated version of the revenue-focused portions of the finance bill was ultimately approved by the Senate, setting the stage for the next battle – the “expenses” phase.
The government has already signaled its intention to make significant cuts. This effort is vital to reduce the deficit, which still hovers far above the government’s target. The final details will be the subject of back-and-forth with the National Assembly, and all bets are off regarding the ultimate outcome.
The government anticipates controlling the text through this process, leaving the ultimate decision to be made without a vote using Article 49-3. Unless, that is, the opposition chooses the dramatic maneuver of censure, forcing the government to respond to or renege on its budgetary strategy.
What were some key amendments the Senate made to the government’s proposed budget that the government later opposed?
## Budget Battle in the Senate: A Conversation with Senator Thierry Cozic
**Interviewer:** Senator Cozic, thank you for joining us today. The atmosphere in the Senate yesterday was heated, to say the least. Can you tell us what happened?
**Senator Cozic:** The government chose to force through over 200 amendments, effectively erasing many of the changes we, the Senate, had carefully considered and adopted. This was done despite being in the minority in a chamber that traditionally offers them support.
**Interviewer:** What was the government’s justification for this move?
**Senator Cozic:** Minister Saint-Martin stated he preferred this public approach to behind-the-scenes negotiations. However, this feels more like a “sore loser reflex” [[1](https://www.euronews.com/business/2024/10/10/french-government-unveils-unprecedented-public-spending-cuts-and-tax-hikes-for-2025)]. It disregards the democratic process and undermines the Senate’s role in shaping the budget.
**Interviewer:** The Senate had made significant changes to the government’s proposed budget. What were some of the key amendments that the government opposed?
**Senator Cozic:** We had increased taxation on certain areas like the ”flat tax” and the “exit tax” and even proposed a “Gafam” tax on tech giants. These were aimed at addressing pressing social and economic concerns. The government’s decision to overturn these amendments raises serious questions about their commitment to finding equitable solutions.
**Interviewer:** How have your colleagues reacted to these events?
**Senator Cozic:** There is widespread outrage and concern. Many senators, like myself, walked out of the session in protest. This action sets a dangerous precedent and casts doubt on the government’s respect for the legislative process.
**Interviewer:** What do you hope will happen next?
**Senator Cozic:** We remain committed to defending the interests of the French people and ensuring a responsible and fair budget. We will continue to raise our voices against this overreach and demand transparency and accountability from the government.
