Home Breaking News Michel Barnier faces the difficulty of reducing public spending

Michel Barnier faces the difficulty of reducing public spending

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Michel Barnier faces the difficulty of reducing public spending

The budget ordeal continues for the government. After transforming the first part of the budget for 2025, dedicated to revenue, adding taxes in tens of billions of euros, deputies began to rework the second part, the one dedicated to expenses. Many planned savings are questioned and expenses are added, with modifications of 10 million, 100 million or 300 million euros.

On Monday, October 28, the agricultural budget increased by 830 million euros in a few hours, the elected representatives of the New Popular Front (NFP) rejoiced. The social and solidarity economy and La Poste have also received a boost. Then, on Tuesday, deputies crossed out with a stroke of the pen the 4,000 job cuts planned in national education, the main reduction planned in the public service. Before generalizing the rate of one euro per meal at the Crous to all students, with an estimated cost of 90 million euros per year.

“The battle for an NFP-friendly budget continues well,” drummer Eric Coquerel, president (La France insoumise) of the finance committee. This is just the beginning. In the coming days, consideration of government amendments to pay sick civil servants less is likely to provoke strong attacks from the left. In addition to the freezing of retirement pensions for six months and the reform of exemptions from company contributions, two proposals that should provide 8,000 million euros and that run the risk of being torpedoed during the session.

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Some of these modifications to the Government’s initial project will surely be erased after the budget process, in the Senate and then in the mixed commission. Especially if Michel Barnier takes responsibility for this important text. However, these first weeks of debate highlight the extreme difficulty, in France, of limiting public spending.

The “singularity” of the French social model

In 2017, candidate Emmanuel Macron pledged to reduce them to less than 52% of gross domestic product (GDP) in 2022, in particular by eliminating 120,000 civil service jobs. Since then, the number of civil servants has continued to increase and spending by the State, Social Security and local authorities now represents more than 57% of GDP, according to Eurostat. The highest rate in the entire European Union. They represented only 35% of GDP at the end of the 1950s.

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