Faced with the probable absence of a 2025 Budget, the French government is preparing to implement a “special law”. This exceptional measure, announced by Emmanuel Macron, aims to ensure the continuity of the State while modifying certain provisions initially planned. Let's look at the main changes that could affect the finances of the French.
Impacts on taxes and pensions
The “special law” could have significant consequences on household taxation. Indeed, without an increase in the income tax scale, nearly 380,000 additional households would become taxable. In addition, 17.6 million households would see their tax contribution increase compared to 2024, according to OFCE estimates.
Regarding the retirement pensionsthe situation could turn out to be more favorable for retirees. In the absence of a Social Security Budget (PLFSS), the planned under-indexation would not apply. Thus, in accordance with the Social Security Code, all basic pensions should be increased to the level of inflation from January 1, 2025.
Here is a summary table of the main changes:
| Domaine | Planned change |
|---|---|
| Income tax | Risk of increase for many households |
| Retirements | Probable revaluation in line with inflation |
Changes in key sectors of the economy
The agricultural sector could be particularly affected by this unprecedented situation. THE measures expected by farmerssuch as reductions in charges for occasional workers or aid for the installation of new operators, are now obsolete. This situation risks accentuating the tensions already palpable in the agricultural world.
In the field of healthhospitals could find themselves in a delicate position. The planned 2% increase in their budget envelope would not be applied, which could compromise certain projects or investments. On the other hand, the reduction in agreed medical transport prices and the tax on sugary drinks should not come into force.
Regarding theenergythe electricity bill should still fall for individuals. The tax on electricity consumption would increase slightly, but the drop in prices on the markets would allow an overall reduction in bills of around 14% for regulated rate subscribers.
Consequences for businesses and the public service
THE large companies and the wealthiest households seem spared by this exceptional situation. The corporate tax surcharge for companies with a turnover of more than one billion euros, as well as the exceptional tax planned for the wealthiest households, will not apply in 2025.
In the public servicethe plan to combat absenteeism is suspended. Controversial measures such as:
- The increase in the waiting period to three days
- Reduction of remuneration to 90% in the event of sick leave
will ultimately not be implemented.
The automotive sector will also experience changes. The planned tightening of the automobile penalty is canceled, maintaining the 2024 scale. On the other hand, the ecological bonus will be significantly reduced, this measure having been adopted by regulation.
This exceptional situation, resulting from censorship by Michel Barnier's government, highlights the complexity of the political and economic issues that France must face. The “special law” appears to be a temporary solution, pending the adoption of a new Budget, potentially at the start of 2025. The repercussions of these changes on the daily life of the French and the country's economy remain to be observed. in the coming months.
