Resigned Budget Minister laurent Saint-Martin announced on Monday that he was “ready”. The draft “special law” on the budget, which will allow the state to increase taxes starting from January 1, 2025, will be presented to the Council of Ministers on Wednesday, the Elysée announced on Tuesday.
According to our information, the issue is expected to be discussed in the national Assembly on December 16 and two days later in the Senate. This “temporary law” was announced by Emmanuel Macron in his televised speech after the censorship of Michel Barnier’s government, to guarantee “the continuity of public services and the life of the country”.
It should make it possible to avoid the “shutdown”, i.e. administrative paralysis, by renewing the budget allocations for 2024 for the following year. The resignation of the Prime Minister and his team leaves the examination of the draft plan in Parliament suspended budget for 2025, whose adoption before the end of the year becomes unlikely in the absence of a new government to take charge of the debates.
Three articles
This framework also provides for the renewal of state spending at the 2024 level, through “applicable credit opening decrees”. The other two provisions should allow the State and Social Security to borrow on the financial markets, through their dedicated agencies (AFT and Acoss), to avoid ending up in the suspension of payments.
The Council of Ministers on Wednesday is expected to reunite the resigning government, implying that the new prime minister will not be appointed before then.
What are the potential impacts of France’s special budget law on public services?
Interview: Navigating France’s Budget Changes wiht Finance expert Julian Moreau
Time.news Editor: Welcome, Julian. With the recent proclamation of a “special law” on the budget by resigned Minister Laurent Saint-Martin, many are curious about its implications. What can you tell us about this proposed law?
Julian Moreau: Thank you for having me. The special law, which aims to increase taxes starting January 1, 2025, is crucial to maintaining continuity in public services amidst the political turmoil following the resignation of Prime Minister Michel Barnier’s government. It’s essentially designed to ensure that essential services, and the operations of the state, can continue without interruption.
Time.news Editor: It seems this law is aimed at preventing a potential “shutdown.” Can you elaborate on what that means for France and its citizens?
Julian Moreau: Absolutely. A “shutdown” refers to a situation where government functions are halted due to budgetary issues—this could lead to administrative paralysis. By renewing the budget allocations for 2024 into 2025, the government seeks to avoid any disruptions in services, which could severely impact citizens’ daily lives, affecting everything from healthcare to education.
Time.news Editor: There’s been talk about this law being discussed in the National Assembly and Senate soon.Why is the timeline important?
Julian Moreau: The discussions scheduled for December 16 in the National Assembly and two days later in the Senate are critical because they could set the stage for how quickly France can respond to its budgetary challenges. If this special law is passed promptly, it allows the state to borrow from financial markets effectively, ensuring that debts can be managed and that services remain operational.
Time.news Editor: Given the current political climate, how likely is the adoption of this budget plan before the end of the year?
Julian Moreau: It’s looking increasingly unlikely without a new government in place. The resignation of the Prime Minister and his team has left a gap in the parliamentary process. While the framework allows for specific financial actions, the uncertainty surrounding leadership can complicate negotiations and delay the necessary approvals.
Time.news Editor: What practical advice can you offer to individuals and businesses affected by thes changes?
Julian Moreau: Individuals should stay informed about potential tax increases and prepare their finances accordingly, while businesses should conduct scenario planning. Understanding which sectors may be impacted by budgetary changes can help businesses strategize in advance. Meanwhile, advocating for transparency and dialog from government leaders will be essential in navigating these budget changes efficiently.
Time.news Editor: As these developments unfold, what should readers keep an eye on for future implications?
Julian Moreau: Readers should monitor the discussions in the National Assembly and the Senate closely, not only for the passage of the special law but also for additional reforms that may arise due to the current political instability.changes in economic policy could considerably affect both local economies and the overall fiscal health of the country, making it crucial for citizens and business owners to stay engaged.
Time.news Editor: Thank you, Julian, for yoru insights today on this pressing issue facing France.
Julian Moreau: Thank you for having me. It’s imperative that we keep the conversation going as these developments unfold.
