The French government is facing significant challenges as it prepares for the 2025 budget. Prime Minister Michel Barnier has emphasized the need for a serious and responsible budget that reflects the current economic landscape.
The government is under pressure to reduce the national deficit by €60 billion and is calling on local authorities to contribute to this effort. However, local authorities have seen their taxing powers diminished, which has led to resistance from local elected representatives.
Despite these challenges, the government is committed to addressing the financial burdens faced by local entities, particularly in relation to social spending. One proposed solution is the implementation of a single social allowance to streamline social spending and alleviate some of the financial strain on local authorities.
The government is also encouraging local authorities to take greater responsibility for public services without reintroducing the taxe d'habitation. Prime Minister Barnier believes in supporting public sector workers and engaging in social dialogue to address employment challenges.
As the government navigates these complex issues, it may resort to using the 49-3 procedure to pass legislation if consensus cannot be reached. Despite the political tensions, the government remains committed to collaboration and responsible governance to ensure the long-term economic health of the nation.