The showdown over the savings local authorities will have to provide next year is becoming more difficult. While the finance bill (PLF) 2025 will be discussed in public session in the Senate starting on November 25, the president of the second chamber, Gérard Larcher (Les Républicains), declared in The Sunday newspaper of November 17 that this effort must be “around two billion euros”very far from the five billion initially requested. “Three are missing compared to what the government planned. We will find them somewhere else.”He clarified, without saying more.
Since the introduction of PLF 2025 in October, local elected officials have continued to increase pressure to reduce the burden. Faced with this anger, the Prime Minister began to let go, “knowing from the beginning that this would be a condition for the support of the senatorial majority”recalls the president of the Senate Finance Committee, the socialist senator from Haute-Garonne Claude Raynal. Not to mention that “The president of the Senate and the majority senators return to their constituencies every week and receive in the face, from local elected officials, the categorical rejection of the austerity measures”points out the socialist senator from Sarthe Thierry Cozic.
On Friday, November 15, speaking before the departments gathered in Congress, Michel Barnier assured: “I am here to tell you, taking into account your very specific situation, that we are going to very significantly reduce the effort required of you by the finance bill”declared. However, he did not advance any amount.
“Debatable” criteria
In the framework established by the Prime Minister, three mechanisms should make it possible to reach 5,000 million euros. The 450 largest communities in the country had to reserve 2% of their income (for an expected profit by the government of 3 billion euros). The part of the value added tax (VAT) that corresponds to the communities was to be frozen in 2025 (1.2 billion). Finally, the VAT compensation fund, which supports community investment spending, was to be less generous (800 million).
Taking note of the concessions made by the Prime Minister on Friday, Gérard Larcher considered on Sunday that it was now necessary “lean” on the 2% reserve, whose criteria are “questionable”. “The Senate Finance Committeesaid, is in the process of fundamentally reshaping these financing systems to protect departments and municipalities.” “Let us keep in mind that communities represent 70% of public investment”pointed out in The J.D.D..
You have 49.59% of this article left to read. The rest is reserved for subscribers.
