There is an uproar among local elected officials. When they were informed, on October 8, of the 5 billion euro effort that the government would expect from them in 2025, they turned their backs. Astonishment was followed by anger; to the mobilization of anger. “We do not accept any of the measures proposed to us”He then launched André Laignel (Socialist Party), president of the Local Finance Committee, an organization that defends the interests of the communities. And who is also vice president of the Association of Mayors of France had also announced a “parliamentary battle” in anticipation of the arrival of the Finance Bill (PLF) 2025 to the National Assembly.
This was no empty threat. Since deputies began examining the PLF in mid-October, Local elected officials carry out a classic first operation of lobbying parliamentarians and proposing amendments. Among the angles of attack, the mechanisms – there are three – imagined by the Government to make the communities contribute up to 5,000 million euros stand out. 3,000 million euros will be allocated from the budget of the 450 largest communities in the country “put in reserve” in order to “stop local spending”.
Then, the executive intends to play with the Value Added Tax (VAT), a part of which is transferred to the communities to compensate for the local taxes eliminated by Emmanuel Macron: in 2025, the executive predicts, the communities will receive the same amount as in 2024, and the State will keep the annual increase in VAT (1.2 billion euros). Finally, the VAT compensation fund (FCTVA), intended to help communities invest, will be less generous next year (800 million euros of savings for the State).
Battle of opinion
Intercommunalités de France, the association representing groups of municipalities, for example, made an amendment aimed at eliminating the article on the FCTVA. The same goes for the Departments of France, an association of elected officials, which also proposed a proposal regarding the €3 billion reserve fund. In both cases they won: the finance commission of the National Assembly rejected these two mechanisms. However, a symbolic victory since the examination of the PLF in public session started from the government’s initial version.
In any case, local elected officials had no illusions about the chances of success of this first offensive. “I’m afraid it won’t help much.recognizes André Laignel. But we do our job. If we can make a few hundred million, that is always…” The French Regions association has only worked on one amendment in relation to the 5 billion effort: it is about reversing the VAT freeze. Making 2025 a “white year” would cost them 360 million euros.
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