The president of the Île-de-France region announced Tuesday, November 12 that all the subsidies it pays and which do not fall within the region's jurisdiction will have to be 100% funded by the State in 2025.
Valérie Pécresse, the president of the Île-de-France region, gave a conference on the region's 2025 budget this Tuesday, November 12, where she denounced an “arbitrary slash” after the measures decided by the government to reduce the France's deficit. She also detailed the cuts planned in Île-de-France.
The 2025 budget will therefore be a constrained and “unwittingly” “austerity” budget for the Île-de-France region. Revenues in the Île-de-France region will drop by 321 million euros between 2024 and 2025. In fact, the Barnier government announced that the State would freeze certain expenses, which will have consequences in the Ile-de-France region.
Immediate reaction from Valérie Pécresse: all the subsidies it pays and which do not fall under the jurisdiction of the region must be 100% financed by the State.
“They are a decision that I make under constraint. It is not a decision that I would have made in normal times. It is a decision that I am forced to make that I have to make choices and these choices, I assumes them”, indicates Valérie Pécresse, the president of the Île-de-France region at a press conference.
“We have no more money”
This concerns, for example, large renewable energy projects, which are usually co-financed with the Banque des Territoires and ADEME. The region will therefore no longer pay a cent for the development of heat networks in Île-de-France, such as the installation of heat pumps or even solar panels, which undermines the regional strategy desired by Valérie Pécresse, who was to reach 40% renewable energy by 2030.
No more payments on housing subsidies either, which will be 100% covered by the State. And Valérie Pécresse explains this because she came to support the State, having in reality no jurisdiction over housing policy. No more regional aid for the creation of social housing, or even aid allocated to young working students and apprentices. On this point, the region had, for example, invested 105 million euros since 2016.
Last aspect concerned: professional training. The region will suspend any new orders in this area. “The State is asking us to increase our training orders in 2025, which we absolutely cannot do. (…) We cannot do more, because we no longer have any money,” assures Valérie Pécresse.
No budget cuts for transport
“The State is taking away our revenues, so we are telling the State to do it alone in 2025. That means a blank year in 2025. Zero euros committed in 2025 on all State-Region plan contract projects with the exception transport projects”, justifies the regional president.
“We are obliged to postpone them sine die to avoid the Île-de-France debt soaring, and so that the debt burden does not cut into our room for maneuver. And so as not to increase taxes on Ile-de-France residents in a year where they will be heavily involved,” she says.
Finally, the only sector which will be exempt from these budget cuts concerns transport, given that the departments participate in their financing. The president does not want to add expenses to departments which are also affected by budget freezes.
“They are requested and co-financed with the departments. I am committed, we will maintain and keep our commitments on the State-region transport plan contract. But for the rest, white year, nothing will be spent this year”, explains Valérie Pécresse .
A “Valerie Thatcher” for the opposition
And to specify that “if additional revenue were voted” by Parliament, “our investments will naturally restart”. This would then be done via an amending budget at the start of 2025.
For her part, Céline Malisé, the president of the communist group in the region, is alarmed by these decisions of the regional executive. “Interrupting State-Region contract plans means interrupting quantities of useful projects,” she underlines.
“It creates investment, it creates jobs and it puts this type of investment on hold. It goes against good economic management,” she continues, encouraging Valérie Pécresse to take the “head of mobilization to ask the government for resources for communities.
“She is a good student of the liberal right. She cuts, she cuts. And at the same time, she puts investments on hold. It’s something that is explosive in the leading economic region of France,” continues Céline Malisé, believing that Valérie Pécresse is “in keeping with the pace” of the government. “In fact, Valérie Pécresse really thinks she is Valérie Thatcher.”
“These are structuring projects for the region,” adds Christophe Prudhomme, regional advisor to the LFIa group.
And to conclude: the region has two sectors where it really intervenes: transport and high schools. Transport, we have a real delay and we need to put the turbo on. And we see in education, there is also a need for massive investment, particularly in the most disadvantaged areas of Île-de-France.”
Garance Amespil and Nicolas Dumas
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