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Over 3,400 Municipalities Ordered to Repay Ineligible Aid Received from the State

More than 3,000 municipalities including Nice, Grenoble and Nanterre had requested a deposit from the State as part of a “safety net” linked to inflation. Aid wrongly claimed and to which they were ultimately not entitled.

A number of cities and communities had an unpleasant surprise this October. Spotted by the site Maire Info, the decree implementing aid decided in 2022 will exclude some 3,400 municipalities and intermunicipalities from the system, and who will therefore have to repay an overpayment. These communities had benefited from an advance as part of an envelope of 430 million euros decided by the government to help them pay their energy bills as well as the increase in the index point of civil servants.

To understand this situation, we have to go back a year. Faced with soaring electricity and gas prices, many municipalities had to close swimming pools and ice rinks and limit public lighting to limit the explosion in their operating costs.

To help the most vulnerable communities, Elisabeth Borne then promised the mayors of France a “safety net” in addition to other measures such as the price shield or the electricity shock absorber. An envelope of 430 million euros was then put in place by the government. This sum would cover 50% of the increase in expenses linked to the increase in the index point and 70% of those linked to inflation.

As it was a last resort aid (hence the term “safety net”), the conditions for benefiting from it were quite strict. Too many, in fact, according to many elected officials who will persuade the Senate to relax them.

3,415 municipalities will reimburse

To benefit from this system, it was necessary to demonstrate significant financial fragility, including a drop of more than 25% in the community’s gross savings in 2022. The communities most caught in the lurch, which anticipated a significant decline in their savings could even request a deposit before the payment of the endowment planned for this month of October 2023. This is what nearly 4,200 municipalities or communities will do.

Some received very substantial sums on this occasion such as Grenoble, Sarcelles, Nanterre or Bondy who obtained more than a million euros and especially the city of Nice and its metropolis which, between them, were credited with 6 .6 million euros.

Problem: after the calculation by the State services, it turns out that the vast majority of these communities were not entitled to it. 3,415 out of the 4,200 urgently requested an allocation at the end of last year when their financial situation turned out to be better than expected. These communities ultimately did not meet the criteria. They will therefore have to reimburse these overpayments.

Which makes many local elected officials cringe and criticize “the effects of government announcements”. Initially announced for “22,000 municipalities”, the “net” system saw its number of potential beneficiaries reduced by half by the executive. Before the Postal Bank estimated it at 8,000 at the end of last year.

In the end, some 3,000 municipalities will have benefited for a total amount of 405 million euros. With very significant differences, recalls Maire Info, from 52 euros in aid for Sivu Énergie des Cévennes to 9.1 million euros from the city of Lille. But the latter will not have to repay anything, she was fully entitled to her endowment.

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