2024-10-10 20:56:00
October 10, 2024
22:56
The French Prime Minister presented his draft budget for 2025. With the return of austerity, he intends to bring the deficit below 5% of GDP thanks to an effort of 60 billion euros.
Michel Barnier does not have the reputation of being a comedian. He is even an austere man, according to those who know him. He demonstrated this austerity in the project presented by his Ministers of the Budget Laurent Saint-Martin and of the Economy Antoine Armand. In total, Matignon aims for an effort of 60 billion euros.
Soministries will have to tighten their beltsnotably Labor, Health or Development Aid. Their spending ceiling for 2025 is identical to that of 2024 because it does not take into account inflation (expected at 1.8% by the government next year), enough to save 15 billion euros. Civil servant positions will be eliminated: 2,201 less, especially in National Education.
THE local communitieswho have already shouted their disapproval, are expected to contribute 5 billion euros to the effort.
Some 8 billion euros should be taken from businesses, and an additional 2 billion from the highest incomes. Tax increases that go down particularly badly within the presidential camp.
THE pensions will be frozen for six months while social security contributions are set to be increased to deliver an additional €4 billion.
White-hot National Assembly
The public electricity giant EDF will pay a dividend to the State, and the car penalty will be tightened, for a total of 2.3 billion euros. The penalty on the purchase of new polluting cars is increased and will affect almost all gasoline and diesel vehicles.
The Ministry of the Armed Forceswhich benefited from a programming law will be spared, with an additional 3.3 billion euros.
The National Assembly, which must validate this finance bill, will examine the text from this Friday, a “nightmarish” exerciseaccording to certain sources within the executive.
The France Insoumise has in any case already said all the bad things she thinks about this budget. THE National Gatheringwhich has not yet directly confronted this government, could seize the opportunity to demonstrate its strength as a political cluster, while the Barnier team has no majority in the chamber.
Consequently, this budget could be adopted without a vote, via article 49.3 of the Constitution. A provision that former Prime Minister Elisabeth Borne used around ten times when she was head of government, to the great anger of a majority of French people.
Since the start of Emmanuel Macron’s presidency, French public debt increased by around 1,000 billion euros. Interest thus reached the sum of 50 billion euros this year, and should rise to 55 billion euros next year. France now borrows at rates comparable to those of Greece or Portugal, raising fears of a “financial crisis“, in the words of the Prime Minister.
Michel Barnier intends to negotiate a seven-party plan with the European Commission to get France out of the excessive deficit procedure.
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