A political and economic affront. On November 26, 2024, the Senate largely rejected the idea of raising electricity taxation beyond its pre-crisis level. A flagship measure of the government's 2025 budget project, supposed to generate 3 billion euros, is thus defeated. The Upper House is banking on an alternative: increasing taxes on gas. But this choice is also debated.
A transpartisan opposition in the Senate
The measure envisaged by the government would have made it possible to raise taxes on electricity, exceeding the levels before the energy crisis. However, a show of hands in the Senate, bringing together votes from the left and the right, decided in favor of its rejection. In return, the senators opted for an increase in gas taxes, considering this choice to be fairer from an environmental point of view.
Socialist senator Thierry Cozic denounced a “social injustice”, criticizing the government's ease in targeting essential energy for many households. Jean-François Husson, general rapporteur of the Republicans, supported this deletion while defending the idea of a fiscal rebalancing between gas and electricity.
Electricity occupies a strategic place in the energy shift undertaken by France. Favoring this carbon-free energy to the detriment of gas seems logical to certain senators. According to Husson, the increase in gas tax would lead to an average increase of €60 per year for a 100 m² house, compared to a shortfall of €200 to €300 if electricity were over-taxed.
For the Minister of the Budget, Laurent Saint-Martin, the senatorial approach is problematic. He recalled the government's commitment to reduce electricity bills by 9% for 80% of households by February 1, 2025.. A bet made possible by the fall in wholesale prices, but conditioned on an increase in taxes to compensate for budgetary losses.
A 2025 budget under high tension
Raising electricity taxes would have brought in more than 3 billion euros, a key figure for a budget already under pressure. The Senate's refusal undermines the government's projections, which must find new revenue in the face of a growing public deficit.
The senators' choice to favor an increase in gas taxes, generating 1.2 billion euros, remains insufficient. Agnès Pannier-Runacher, Minister of Ecological Transition, estimated this gain “probably overestimated”.
This rejection represents a significant political setback for the government of Michel Barnier. The often acquired support of the Senate is crumbling this time. In the National Assembly, a coalition of oppositions had already rejected the article relating to electricity taxation. This measure has become a red line for several groups, including the National Rally, which threatens censorship for several days now.
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