2024-11-25 18:07:00
The goodwill of the senatorial majority of the right and the center on the government‘s finance bill has a price. Hoping to find in the Upper House, where the examination of the text in public session began this Monday, a more attentive ear than in the Assembly, the Ministers of the Economy, Antoine Armand, and of the Budget, Laurent Saint-Martin , gave signs of openness to the senators.
While recalling in the chamber the objective of reducing the public deficit to 5% of GDP in 2025, Laurent Saint-Martin also recognized, on Public Senate earlier in the morning, that the latter was fragile. “It could be a little bit beyond that,” he said. There is no point in being stuck to 5% if it allows us to have more collective agreements. »
“Improvible” text
“In the political context we are experiencing, and after the rejection of the budget by the National Assembly, the Senate has more than ever a major responsibility, and I have no doubt that everyone here is aware of it,” declared Antoine Armand, in opening of session. Which does not prevent the text from being “perfectible”, he agreed. “We are counting on the discussions that will take place in this hemicycle to improve its content. »
This facelift will first target the provisions which concern local authorities, a subject dear to senators. The government expected them to reduce spending by 5 billion euros in the initial project. The senatorial majority wants to limit the effort to 2 billion euros, recalled the rapporteur of the finance committee, Jean-François Husson (LR). Ultimately, it will be between 2 and 5, but “not 5”, summarized Laurent Saint-Martin a little earlier, on Public Senate.
“We heard the feedback from local elected officials, the alerts. The Prime Minister has already announced that the government is ready to modify the effort,” recalled the Minister of the Budget in front of the chamber. Concerning the precautionary fund, “we will significantly reduce the planned contribution, and we will also ensure that the funds collected will be returned to the contributing communities,” he declared. The landing remains to be clarified. On Public Senate, Laurent Saint-Martin also indicated that the scope of contributing communities – at this stage the 450 richest – could be reviewed.
Opening signs
Several government amendments reflect other concessions made by Michel Barnier last week, such as the 0.5% increase in the transfer tax ceiling, which should give the departments some breathing space, or the decision to finally make it non-retroactive. the lowering of the rate of the compensation fund for value added tax (FCTVA) – investment aid. This renunciation will involve increasing this levy on State revenue next year by 612 million euros compared to the initial project. According to our information, the executive should also agree to an increase in the mobility payment, which finances public transport.
Bercy also showed itself open to senatorial proposals on the “cost of housing”, according to Laurent Saint-Martin. Even suggestions from the opposition. According to our information, the government should, for example, support an amendment from PS senator Claude Raynal, chairman of the finance committee, which plans to extend the scope of the VAT suspension benefiting aeronautics exporting companies.
On Public Senate, the Minister of the Budget also underlined his desire to take up ideas that emerged during the debate in the Assembly, “including with groups like the PS on which we are taking up some proposals which are interesting. » Without details at this stage. On the other hand, he remained firm on the increase in the excise on electricity, which the senatorial majority wants to contain at the pre-crisis level, with Bercy still wishing to go beyond to release around 3 billion additional euros. A casus belli for the RN, which threatens censorship “if the budget remains as it is”.
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How do you plan to address the concerns of local authorities during the revisions to the finance bill, especially given the proposed reduction in their funding obligations?
**Interview with Antoine Armand, Minister of the Economy, on the Government’s Finance Bill**
**Interviewer:** Thank you for joining us today, Minister Armand. As the Senate begins its examination of the finance bill, what are your expectations from this process, especially after the recent rejection of the budget by the National Assembly?
**Antoine Armand:** Thank you for having me. We’re entering this phase in the Senate with a clear recognition of the body’s heightened responsibility. Indeed, the Senate’s role becomes crucial given the political climate we are in. I believe we have an opportunity here to collaboratively refine the text. It’s essential that we listen to the concerns of all parties involved, particularly regarding the implications for local authorities.
**Interviewer:** You mentioned local authorities, which are a significant focus. What specific changes are you anticipating regarding their funding obligations?
**Antoine Armand:** Originally, we proposed a reduction in spending of 5 billion euros from local authorities, but we understand the need for a more measured approach. The senatorial majority is suggesting we limit this to 2 billion euros. We’re open to negotiations, and I expect that the final decision may fall somewhere in between. It’s crucial that we strike a balance that allows for necessary budgetary responsibility without unduly burdening local governments.
**Interviewer:** Minister Saint-Martin indicated that if sticking to a strict 5% GDP deficit target might hinder collective agreements, adjustments may be needed. How flexible can the government be with this target?
**Antoine Armand:** Flexibility is key in our approach. While the 5% target serves as a guideline for fiscal responsibility by 2025, we must consider the broader economic context and the need for constructive agreements with various stakeholders. It’s essential that we do not rigidly adhere to this percentage at the expense of crucial negotiations that can benefit our economy and local communities.
**Interviewer:** Could you elaborate on the government’s plans for the precautionary fund and how the contributions will be structured moving forward?
**Antoine Armand:** Absolutely. We are planning to significantly reduce the contributions expected from local communities to this fund. Moreover, we want to ensure that the resources collected are returned to the contributing communities. We are currently evaluating which communities contribute—initially set for the 450 wealthiest—and there may be adjustments to this scope as discussions progress.
**Interviewer:** Given the political complexities and the need for cooperation across parties, what message do you have for lawmakers and constituents during this negotiation period?
**Antoine Armand:** My message is one of collaboration. We are at a pivotal moment where constructive dialogue can lead to effective solutions. I encourage all lawmakers to approach these discussions with an open mind and a commitment to improving the proposed legislation. Our goal is to enhance the economic landscape for all citizens, and that requires all voices to be heard and considered in this process.
**Interviewer:** Thank you, Minister Armand, for your insights and willingness to engage in this important dialogue. We look forward to seeing how the Senate discussions evolve.
**Antoine Armand:** Thank you for having me. I appreciate the opportunity to discuss these vital issues.
