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Maxim T’sjoen
Published on August 20, 2024 at 9:50 p.m. See my news Follow News
France is spending another day without a government, and time is running out for the budget. With this in mind, Gabriel Attal sent the ministries the “ceiling letters” for a 2025 budget project that he is proposing on Tuesday, August 20, 2024. the exact renewal of the total appropriations for 2024.
It is up to the future government to put its political stamp on it. As a reminder, the ceiling letters set the budget for the coming year for each ministry and the expenditure not to be exceeded.
Having a budget “on time”
If the initiative is surprisingFrance still does not have a new Prime Minister (Gabriel Attal having resigned). Matignon praises “a republican objective”, that of “ensuring the continuity of the State”.
The prime minister’s main concern is that the government that succeeds him has the means to present a budget.
Matignon
This “allows France to have a budget in good time“, and “also for the next government to make its own choices based on what has been prepared and transmitted to the ministries,” added the Prime Minister’s office. Choices yes, but somewhat dictated by the resigning government.
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Either, the incompressible delays of drawing up a budgeta real legislative monster, are such that in the absence of a successor before at least next week, Gabriel Attal has finally decided to move the work forward to him.
Let us specify that the draft Finance Bill (PLF) must in fact to be tabled in Parliament on October 1st after a whole series of examinations and opinions in September (by the High Council of Public Finances, by the Council of State, by the Council of Ministers), and before the discussion in the National Assembly then in the Senate.
The Finance Act is must be published before the following January 1st.
“A zero-value budget” (but with 10 billion in savings)
With “this reversible budget”, the Prime Minister “is fulfilling his duty by avoiding the budgetary wall”, stressed Matignon, with “absolute respect for the ballot boxes”.
A fair play movement which seems to be in line with the Elysée’s wish to see the formation of “the broadest and most stable majority possible in the service of the country.”
Concretely, there were 492 billion euros of credits in the 2024 budget, there are also 492 in total in the ceiling letters sent on Tuesday to the departments of the ministries, which will begin to put them into practice.
This is what we call “ a zero value budget“, and “it’s quite rare,” Matignon emphasizes.
The distributions are slightly different, with credits cut in particular to take into account the fall in unemployment, or to reduce the cost of apprenticeships.
According to Matignon, the identical renewal of total credits results in a real saving of some 10 billion euros compared to a budget which would have reflected 2% inflation.
The new government that will be appointed will be able to make the adjustments that it deems necessary within the framework of the priorities that it will have defined.
Matignon
Bruno Le Maire wanted more savings
In making this choice, Gabriel Attal did not listen to his resigning Minister of Finance, Bruno Le Maire. The latter had transmitted lower proposals of 5 billioneuros – credits of 487 billion in total – to increase the chances of having a public deficit (balance of the accounts of the State, Social Security and local authorities) which will return to 3% of the GDP in 2027.
France has committed to this while it is currently subject to an excessive deficit procedure from Brussels, along with six other European countries.
But Bercy does not wish to be offended by the increase in spending decided by Matignon: “Everyone is playing their role, the most important thing is that the government moves forward to allow the next one to finalize its budget,” it explains.
Matignon nevertheless assures that, even at 492 billion, the ceiling letters have “an objective of responsibility” in terms of public finances.
Especially since the copy takes into account the cancellations and freezing of credits already decided this year.
NFP satisfied?
Socialist MP Philippe Brun, vice-president of the Finance Committee of the National Assembly and elected member of the New Popular Front (NFP), appeared satisfied on Tuesday on BFM Business with the turn of events, and with this first “essentially technical” draft of the PLF, which will allow us to have a text to discuss on October 1, even if it is very incomplete.
Then, during the parliamentary shuttle, in October, November and December,“We will have the possibility of using the right of amendments” he noted. And thus to considerably modify the initial text. Except that in the absence of an absolute majority, this could be mission impossible.
with AFP.
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