2023-07-05 16:51:47
Mathieu Hanotin, socialist mayor of Saint-Denis (Seine-Saint-Denis), received at the Elysée with some 200 other city officials, July 4, 2023. CYRIL BITTON / DIVERGENCE FOR “THE WORLD”
It is a stone thrown into the pond of the already complicated relations of the executive with local communities. While these, through the Association of Mayors of France (AMF), affirmed on June 13 during a press conference that their financial situation is strained, the Court of Auditors notes, on the contrary, their “good financial health in 2022”. And, frankly, she believes that the exceptional state support decided in 2022 to offset the sharp increase in inflation on community spending has proven “unjustified”.
And, continues the Court of Auditors, since the largesse of the State in favor of the communities has contributed to widening its deficit, the latter must help the State to restore its finances. This amounts to saying that, since the State has been too generous with the municipalities – and, to a lesser extent, with the departments and the regions –, they must therefore now pay their debt.
Obviously, the mayors do not hear it that way. On June 13, recalling the fragility of local finances, the vice-president of the AMF, the socialist André Laignel, had warned: “We have already largely done our part”in terms of deficit and debt reduction. “More than 60 billion euros have been taken [sur les finances des collectivités locales] the last ten years”, recalled the mayor of Issoudun (Indre). And, he said, “neither on the debt nor on the deficit the communities are in question. When we are told to split the effort 50-50, we say it makes no sense”.
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The debt of local authorities represents ” less than 10 % “ that of the country, Mr. Laignel still insisted. “And we pay for it; it is not the state that does it. It therefore costs him nothing and it is a minor”he specified, recalling that the management of local elected officials allowed
already to reduce the State deficit to the tune of 4.8 billion euros.
Revenues grew more than expenses
All this is true, notes the Court of Auditors. In its report published Tuesday, July 4, it notes that communities have generated a financing capacity of 4.8 billion euros. One asset among others of a financial situation “particularly favourable”. Their net savings (following repayment of loans) increased from 25.7 billion euros in 2021 to 26.3 billion in 2022.
Debt has increased in raw data (185.8 billion euros), but it weighs relatively less heavily in local finances: it is equivalent to 4.3 years of gross savings in 2022, compared to 5.3 years in 2016 Moreover, local authorities freely deposited in 2022 far more funds than they had done before: 59.9 billion euros. And this, despite sharply rising expenses: + 5% in one year. Goods purchases (+9%) were hit by inflation; just like, indirectly, the salaries to be paid to the agents. Social spending has also increased.
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