On the eve of the examination of the budget in the National Assembly, the Prime Minister reestablishes his red lines, in an interview with Sunday Newspaper.
Prime Minister Michel Barnier warned on Saturday against the temptation of “Lépine tax competition” during the examination of the 2025 budget, after a first week of debates in committee marked by the adoption of numerous amendments creating new taxes. The Finance Committee on Saturday rejected a largely revised draft budget after four days of debate. The parties of the government coalition and the National Rally voted against a text including, under the leadership of the left, billions of euros in new tax revenue.
With the adoption of the New Popular Front (NFP) amendments, “which did not even fit together, the text had become untenable”lamented Michel Barnier in an interview with Sunday Newspaper (JDD). “As part of the parliamentary debate, we will pay attention to amendments which preserve or improve competitiveness and, more broadly, economic activity. Because things must be clear: the effort that everyone must take part in cannot turn into a Lépine tax competition.”he said. From Monday, deputies will resume debates in the hemicycle, on the basis of the government’s original draft budget.
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In this interview with JDDMichel Barnier is opposed to the perpetuation of the temporary tax increases that he recommends for large businesses or the wealthiest French people. Some of its allies, at Modem, are in favor of making them permanent. “I do not want us to increase taxation beyond the temporary effort that we have asked of certain large companies and the wealthiest taxpayers. And I undertake to ensure that no temporary tax, dictated by circumstances, becomes permanent.he said. His project provides for a maximum duration of two years for these exceptional taxes.
Adoption via 49.3 is not excluded
The Prime Minister wants to make an effort of 60 billion euros in his 2025 budget to put an end to the spiraling public deficit: 40 billion in savings and 20 billion in additional tax revenue. He added that he wanted the parliamentary debate to develop, but did not rule out adoption without a vote, via article 49.3 of the Constitution. “In the event of a parliamentary blockage, delaying the adoption of the budget could paralyze public action, compromise the management of state finances and endanger France’s financial credibility. The 49.3 thus makes it possible to avoid a blockage”he said.
Concerning pensions and the six-month postponement of their indexation to save 3.6 billion euros, Michel Barnier said “open to discussion”. “I know that pensions are sometimes very low. However, they received a significant boost last January. Everyone will have to roll up their sleeves because it is in the country’s interest. We can no longer draw blank or wooden checks on the backs of our children and our grandchildren.”
The Prime Minister also confirmed the objective, within four years, of reducing the number of state operators by 10%. “We are going to make significant efforts to make central administration directors, state operators, responsible for savings in which they will be interested”warns Michel Barnier.
On the floods which affected the Center-East of France, Michel Barnier promised that the declaration of natural disaster for the municipalities concerned will be taken “very quickly” and announces that its climate change adaptation plan, announced a month ago, will be presented “very soon”. State aid is planned for “protect our fragile soils and forests”.
