The standoff over the savings that local authorities will have to provide next year is getting tougher. While the 2025 finance bill (PLF) will be discussed in public session in the Senate from November 25, the president of the second chamber, Gérard Larcher (Les Républicains), declared in The Sunday Journal of November 17 that this effort should be “around two billion euros”very far from the five billion initially requested. “Three are missing compared to what the government planned. We will find them elsewhere”he clarified, without saying more.
Since the presentation of the PLF 2025 in October, local elected officials have continued to increase pressure to reduce the burden. Faced with this anger, the Prime Minister began to let go, “knowing from the start that this would be a condition of the support of the senatorial majority”recalls the president of the Senate Finance Committee, the socialist senator from Haute-Garonne Claude Raynal. Not to mention that “the president of the Senate and the senators of the majority return to their constituencies every week and receive in the face, from local elected officials, the categorical refusal of austerity measures”notes the socialist senator from Sarthe Thierry Cozic.
Friday November 15, speaking before the departments gathered in congress, Michel Barnier assured: “I am here to tell you, taking into account your very specific situation, that we are going to very significantly reduce the effort required of you by the finance bill”he declared. However, he did not advance any amount.
“Debatable” criteria
Within the framework set by the Prime Minister, three mechanisms were to make it possible to achieve 5 billion euros. The 450 largest communities in the country had to set aside 2% of their revenue (for a gain hoped for by the government of 3 billion euros). The share of value added tax (VAT) which accrues to communities was to be frozen in 2025 (1.2 billion). Finally, the VAT compensation fund, which supports community investment spending, was to be less generous (0.8 billion).
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Taking note of the concessions made by the Prime Minister on Friday, Gérard Larcher considered on Sunday that it was now necessary “lean” on the 2% reserve, the criteria of which are “questionable”. “The Senate Finance Committeehe said, is in the process of fundamentally reshaping these financing systems to protect departments and municipalities.” “Let’s keep in mind that communities represent 70% of public investment”he noted in The JDD.
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