Navigating Potential Delays for the 2025 Finance Bill

2024-09-09 05:47:25

Baptiste Morin / Photo credits: Eric Beracassat / Hans Lucas / Hans Lucas via AFP
07:47, September 09, 2024modified at

08:42, September 09, 2024

The budgetary sprint has begun for Michel Barnier. Having just been appointed, the Prime Minister must act quickly, as deadlines are approaching. So much so that the new tenant of Matignon is first looking to give himself a little more time.

A Prime Minister under surveillance and pressure, with a first obstacle in sight, the 2025 budget. The public deficit could reach 5.6% of GDP at the end of the year, very far from the initial forecasts. So it is time to save money. Where to draw? We will have to wait a little longer to have the answer.

A delay requested from Brussels

Pierre Moscovici, the president of the Court of Auditors, is considering postponing the submission of the finance law by 15 days. He is asking a double report to the Court of Auditors and to Brussels.

The reason is that the first deadline is September 20. This is the date by which the executive must have sent its plan to reduce the public deficit to the European Commission. But the government asked Brussels this weekend for an extension, to give it time to harmonize this plan and the 2025 finance bill.

Because this is the other deadline in the budget calendar: the text of the 2025 budget must theoretically be submitted to the National Assembly no later than October 1. But the executive could take one or two more weeks as long as it leaves at least 70 days for Parliament to debate it.

Jérôme Fournel, new chief of staff at Matignon

To save time, Michel Barnier has chosen Jérôme Fournel as his chief of staff at Matignon, who until a few days ago was still in charge of Bruno Le Maire’s office at Bercy. In this capacity, this 57-year-old senior civil servant worked on a first draft of the budget during the summer.

A number

110 billion euros. This is the amount of savings that would need to be made by 2027 to reduce the public deficit to below 3% of GDP, according to a note from the General Directorate of the Treasury. A perspective deemed “politically difficult to achieve, socially unacceptable and economically hardly coherent” by the President of the Court of Auditors Pierre Moscovici in an interview given to Parisian Sunday.

1725879190
#Finance #Bill #postponed

What‍ are the key challenges Michel Barnier faces in preparing​ the 2025 budget for France?

Michel Barnier: The New French Prime Minister Faces a Budgetary Sprint

Michel Barnier, the former EU Brexit negotiator, ⁢has been appointed as⁢ the​ new Prime Minister of France by President Emmanuel Macron [[3]]. With this appointment,⁣ Barnier is⁤ faced with a daunting task of rectifying France’s finances, which are projected to reach a public deficit of 5.6% ⁤of GDP ⁢by the‌ end of the year. This is significantly higher than ‍the initial forecasts, and​ immediate action‌ is ‍required to save money.

Barnier’s first obstacle is the 2025 ⁤budget, which requires careful planning and execution to meet the European Commission’s deadline. The French government has requested an extension from​ Brussels to harmonize its plan to ⁢reduce the‍ public deficit with the 2025 finance bill [[2]]. This extension will give Barnier’s administration more time to prepare a comprehensive plan to address the ⁣budgetary issues.

The ​delay requested from Brussels is crucial, as the initial deadline for submitting the finance law was September 20. However, with ⁣the extension, the government ‍will⁢ have more time to prepare a robust⁢ plan to reduce the public deficit. The text ⁣of the ⁤2025 budget is expected to be submitted to the National Assembly by October⁣ 1, but the executive can take an⁣ additional one or two weeks as long as Parliament has at least 70 days ‍to debate it.

To support him in this challenging task, Barnier has​ appointed Jérôme‌ Fournel as⁢ his chief of staff at Matignon. Fournel, who was previously in charge of Bruno Le Maire’s office at Bercy, brings valuable experience and expertise to the ‍role.

A Daunting Task Ahead

Barnier’s administration is under pressure to deliver a budget that meets the European Commission’s requirements while also addressing France’s ⁣economic challenges. The target ⁢of saving 110 billion​ euros by 2027⁤ is an ambitious one, and it will require significant effort and coordination from all stakeholders [[1]].

As Barnier navigates the​ complexities of French politics and economics, he will be ‍closely watched⁢ by the European Commission, the French people, and the international community. His success or failure will have far-reaching ​consequences for France’s economy and its position in the European Union.

In the coming weeks⁣ and months, Barnier will need to make tough decisions to address ⁤the⁢ budgetary issues, and his leadership will be tested. However, with his experience as ⁢the EU’s Brexit negotiator, he brings a unique set of skills and knowledge to the role of Prime Minister.

As the budgetary ⁣sprint begins, all ⁣eyes⁢ are ‌on Michel Barnier to deliver a comprehensive plan that addresses France’s economic challenges and meets the European‍ Commission’s requirements. The next few weeks will be crucial in determining​ the success of his administration and the future of France’s economy.

What strategies is Michel Barnier considering to address the rising public deficit as Prime Minister of France?

The Budgetary Sprint: Michel Barnier Faces Daunting Challenges as Prime Minister of France

Michel Barnier, the newly appointed Prime Minister of France, is under intense scrutiny as he navigates his first major obstacle: the 2025 budget. With public deficit expected to reach 5.6% of GDP by the end of the year, far exceeding initial forecasts, the Prime Minister must act swiftly to address the issue. However, given the complexity of the task, Barnier is seeking more time to prepare the budget, requesting a delay from Brussels [[1]].

A Delay Requested from Brussels

Pierre Moscovici, President of the Court of Auditors, is considering a 15-day postponement of the finance law submission. This would allow the government to submit a double report to the Court of Auditors and to Brussels, providing more time to harmonize the plan to reduce the public deficit with the 2025 finance bill [[2]]. The initial deadline for submitting the plan to the European Commission is September 20, but with the requested extension, the government hopes to have more time to prepare a comprehensive budget.

Key Challenges in Preparing the 2025 Budget

Michel Barnier faces several challenges in preparing the 2025 budget for France. With a public deficit that is higher than anticipated, the government must identify areas where costs can be reduced without compromising essential public services. The Prime Minister will need to deploy his renowned negotiation skills to balance the demands of various stakeholders, including parliamentarians, union representatives, and European Commission officials [[3]].

Jérôme Fournel, New Chief of Staff at Matignon

As Barnier prepares to tackle the budget challenge, he has appointed Jérôme Fournel as his new chief of staff at Matignon. Fournel’s experience and expertise will be invaluable in supporting the Prime Minister in navigating the complex budgetary landscape.

A Number of Uncertainties Remain

Despite the requests for more time, the budgetary process remains shrouded in uncertainty. The government’s ability to reduce the public deficit while maintaining crucial public services will depend on a range of factors, including the state of the economy, international cooperation, and domestic political support. As the deadline for submitting the 2025 budget approaches, Michel Barnier and his team will need to work tirelessly to find solutions to these pressing issues.

Michel Barnier’s first test as Prime Minister of France will be his ability to navigate the complex and challenging budgetary process. With the public deficit on the rise, the government must take decisive action to address the issue. The requested delay from Brussels will provide some breathing room, but the clock is ticking, and the stakes are high. Will Barnier’s negotiation skills and Fournel’s expertise be enough to steer France’s economy back on track?

References:

[1] Le Figaro – “Le budget, une première bataille à valeur de test pour Michel Barnier” ()

[2] Il Sole 24 Ore – “Michel Barnier, il grande negoziatore che non ha mai fretta” (<https://www.ilsole24ore.com/art/michel-barnier-grande-negoziatore-che-non-ha-mai-fretta-AFcan8