The twentieth Congress of the Regions of France concluded on September 26 in Strasbourg in the presence of Catherine Vautrin, new Minister of Partnership with the Territories and Decentralization. Local elected officials carried a scent of distrust. At issue: the supposed financial slippage in the finances of regional authorities. On September 3, Bruno Le Maire, resigning Minister of Finance, pointed out “ the extremely rapid increase in community spending », sparking a wave of concern and indignation among regional executives.
“ We are not responsible for France’s budget deficit », replied Carole Delga, socialist president of the Occitanie region and president of the Association of Regions of France (ex-ARF). Despite the outstretched hand of Catherine Vautrin, the representatives of the 18 metropolitan and overseas regions left Strasbourg without obtaining a response to their concerns. “ We don’t like what was said at Bercy », said Renaud Muselier, president of the Provence-Alpes-Côte-d’Azur region.
Special broadcast: La Grande Tribune des Régions
Elected officials from the 18 metropolitan and overseas regions represented in Strasbourg fear the harmful effects of an austerity budget on their own finances. On September 18, under the suspicious gaze of financial rating agencies, Prime Minister Michel Barnier judged “ very serious » the budgetary situation of the country, and asked “tall the elements to appreciate the exact reality “.
8% of the national debt carried by the regions
“ The regions are the only communities which have not obtained compensation for the increase in the price of fuel and energy in 2023 », replied Carole Delga. “ The difference between the dynamics of VAT revenue (which supplies regional budgets, Editor’s note) and our additional spending leaves a hole of a billion euros », calculated the elected official.
“ The regions contribute 8% to the national public debt. This share has fallen, it was 9.3% thirty years ago. Since 2019, we have increased our investments by 26% for the benefit of reindustrialization, in public transport, renewable energies and the rehabilitation of buildings. We need stability in our endowments”she pleaded.
“ It’s not time for announcements yet », Warned Catherine Vautrin, aware of the challenges of the budgetary orientation debates planned for the beginning of October in the assembly and within the government. “ As a local elected official like you, I was nourished by this experience of the territory. I am indeed one of you », recalled Catherine Vautrin. The minister made a timely promise not to “ contrast state finances with those of local finances. The taxpayer expects better from us “.
The failure of cohesion policy
Worried looks are also directed towards Brussels. For the period from 2021 to 2027, nearly 18 billion euros have been allocated to French regions to implement the European cohesion policy. Ursula von der Leyen, President of the European Commission, is considering reforming this policy. It could deprive regional executives of their power to instruct and implement the ERDF (European Regional Development Fund), the ESF (European Social Fund) and the JTF (European Just Transition Fund). “ France is not the champion in the use of these European credits », recognized Patrice Martin, president of Medef, invited to Strasbourg by Carole Delga.
Nicola de Michelis, deputy director at the European Commission’s DG Regio (Directorate-General for Regional Policy), suggested that the next budgetary programming period would see fewer funds and a more centralized approach. The new European Commission, in place since this summer, will propose its next draft multiannual financial framework (MFF) at the beginning of 2025, which will extend from 2028 to 2034.
“ Cohesion policy is in very poor condition. 60 million Europeans live in territories whose GDP is lower than their 2000 level », observed Nicola de Michelis. “ Over the current period, the average level of commitments does not exceed 20 to 25%. There is too much money and this money is poorly spent, or not spent “, he lamented.
Brussels too strict
The observation is severe. “ We must be certain that investments financed by the regions are aligned with major European priorities. Otherwise, we will put them in sectoral funds for industry or climate change », warned Nicola de Michelis.
Barely outlined, European reform is already perceived as an injustice. “ We have implemented all available European funds, with a compliance rate of 99.3% “, boasts Franck Leroy, president of the Grand Est regional council. Catherine Vautrin promised her assistance to regional elected officials when they go to Brussels to defend their vision of effective use of European structural funds next year.
