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– Michel Barnier was overthrown by the vote of a motion of censure on Wednesday December 4.
“We are (…) at a moment of truth” and of “responsibility”, car the “reality” budgetary “will not disappear by the enchantment of a motion of censure”, declared Michel Barnier, Wednesday December 4, before the vote on a motion of censure against his government. Thursday morning, the Prime Minister tendered his resignation to Emmanuel Macron as stipulated in the Constitution.
The head of government called into question the responsibility of his government by resorting, on Monday, to article 49.3 of the Social Security financing bill (PLFSS). The deputies adopted the motion of censure by 311 votes. Therefore, the PLFSS is rejected. With the resignation of the government, the entire 2025 budget is in jeopardy. To ensure the continuity of the State, a special law aimed at authorizing it to continue to collect taxes should be passed. On the other hand, the key measures of the budget for next year fall by the wayside.
Barnier government overthrown: what will Emmanuel Macron announce this Thursday?
Measures to combat absenteeism within the public service
Starting with the measures intended to combat absenteeism within the civil service. Responding to the call of their unions, civil servants are on strike on Thursday December 5. The mobilization is maintained despite the vote on the motion of censure. They denounce the measures proposed by the government which aimed to save 1.2 billion euros in the 2025 budget. The executive had announced the reduction from 100% to 90% of sick leave compensation for civil servants as well as the introduction of three unpaid waiting days, instead of one currently, during these absences (excluding serious illnesses).
Tuesday December 3, Michel Barnier, interviewed on TF1 and France 2, affirmed that in the event of a motion of censure “nearly 18 million French people will see their income tax increase (…) because we will not have been able to include the planned reindexation in the finance law.” Indeed, the 2025 budget planned to increase the income tax scale by 2% in the face of inflation. If the government passes a special law, it can then issue decrees aimed at providing the State with the equivalent of last year’s credits. The 2024 budget would apply. The tax scale will therefore not take inflation into account. “If we renew the 2024 Budget, we will automatically bring 380,000 additional French households into income tax”alerted the Minister of the Budget, Laurent Saint-Martin, in an interview with Le Parisien on November 30.
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Farmers, big losers of the motion of censure
The flagship measure of the 2025 budget is also being forgotten. “We will also have to put aside the new tax measures: taxation of share buybacks, contribution from large companies, contribution on very high incomes”warned Laurent Saint Martin before the vote on the motion of censure. The surcharge which targeted the 450 companies with more than a billion euros in turnover in France will ultimately not come into force. The planned savings were estimated at 8 billion euros for 2025. The contribution of the wealthiest tax households has also been postponed.
Farmers are the big losers from this motion of censure. The measures obtained by the profession following their mobilization last winter are now obsolete. This is the case of reductions in charges for occasional workers, aid for the installation of new operators or even the reform of farmers’ retirement. “Farmers will pay the price for this censorship”said the Minister of Agriculture, Annie Genevard, during questions to the government on Tuesday, December 3
Retirees gain from the change
Furthermore, the Social Security budget provided for an increase in pensions at half the inflation rate on January 1, 2025. A supplement was planned for July 1 for retirees whose pension is less than the amount of the minimum wage. With the motion of censure, retirement pensions will all be revalued on January 1 based on inflation. Retirees therefore fare better.
The increase in the taxation of plane tickets supposed to bring the State 1 billion euros in revenue is eliminated, as is the increase in the taxation of sports betting and online gambling. The Senate also voted to increase the tax on sodas. She is forgotten – at least, for the moment.
