The National Assembly has been absent for several weeks during the vote on the government’s future budget. The text on the “revenue component” was finally rejected and sent back to the Senate on Tuesday. This time it’s about the clubs that will be released in December. Bruno Le Maire, former Economy Minister, and Thomas Cazenave, former Budget Minister, will be heard on December 12 before a commission of inquiry of the National Assembly into the budget slippage, parliamentary sources have learned.
On the initiative of its president Éric Coquerel (LFI), the Finance Committee of the Assembly requested and obtained the powers of a commission of inquiry for six months (summons with the obligation for the person to honor them, powers of investigation, hearings under oath, etc.), in order to investigate “the causes” of the ”variation” and “differences in fiscal and budget forecasts” observed for the years 2023 and 2024.
The public deficit is expected to be 6.1% of GDP this year, a far cry from the 4.4% expected in the autumn of 2023 and the 5.1% expected in the spring after the reassessment by the previous executive. Chaired by Éric Coquerel, the commission of inquiry will be led by two rapporteurs: Éric Ciotti, president of the UDR group, and Mathieu Lefèvre, vice-president of the Macronist group Ensemble pour la République.
Work begins on December 3rd
According to Éric Coquerel’s entourage, its work should begin on “December 3”, with a series of hearings of administration officials (General Directorate of the Treasury, Directorate of Budget, General Directorate of Public Finances, Directorate of Social Security and General Directorate of Local Authorities). Before moving on to the highly anticipated hearing of Bruno Le Maire and Thomas Cazenave on December 12th.
The commission of inquiry could then resume its work in January with the hearings of economists, and on a date to be defined with the hearings of other political representatives. The names of former heads of government Élisabeth Borne and Gabriel Attal were mentioned during a preparatory working meeting on Wednesday morning, according to several parliamentary sources.
At the helm of Bercy for seven years, Bruno Le Maire has already come to explain himself to the Senate at the beginning of November before an information mission. He had denied any “guilt” or “concealment” in the face of the significant deterioration of French public finances. He denounced a “manhunt”. “When they tell me that the deficit in 2024 will be 6.1%, it is a choice of the current government,” said the former minister, criticizing the executive for not having implemented all the measures “prepared” by the previous government to fight against the deterioration of the accounts.
Interview Between Time.news Editor and Budget Expert
Time.news Editor: Welcome to Time.news! Today, we’re diving into the complexities of the national budget process as we see significant changes happening in the National Assembly. I’m joined by [Expert’s Name], a renowned expert in economics and public finance. Thank you for being here today!
Expert: Thank you for having me! It’s a pleasure to discuss such an important topic.
Editor: Let’s start with the recent rejection of the government’s “revenue component” by the National Assembly. This has led to some back and forth with the Senate. What does this rejection mean for the government and the budgeting process?
Expert: The rejection of the revenue component is quite significant. It indicates a disconnect between the government’s budget projections and what the Assembly feels is realistic or acceptable. This can set off a chain reaction, complicating the overall budget process and potentially delaying important fiscal planning.
Editor: It seems the National Assembly has been relatively inactive recently, and now we’ve learned that Bruno Le Maire and Thomas Cazenave will face a commission of inquiry. How do you see their testimony impacting the inquiry’s findings?
Expert: Bringing in former ministers like Le Maire and Cazenave highlights the accountability expected from past administrations. Their insights could provide clarity on the budgeting discrepancies we’re witnessing. In a way, it emphasizes that the commission is taking this inquiry seriously to uncover the root causes of the budget slippage.
Editor: Speaking of the inquiry, Éric Coquerel, the committee’s president, has asked for investigative powers. How significant is this move in terms of parliamentary procedures and oversight?
Expert: It’s a pivotal action. Granting the Finance Committee such powers allows for deeper scrutiny of past fiscal decisions and increases the accountability of current and former officials. This level of oversight reassures the public that there are mechanisms in place to address financial mismanagement.
Editor: The public deficit is projected to hit 6.1% of GDP, up from earlier estimates. What are the implications of this rising deficit for the French economy?
Expert: A deficit of 6.1% is concerning. It diverges significantly from earlier projections, signaling potential issues in government revenue collection and spending practices. If this trend continues, it may lead to higher borrowing costs and limit the government’s capacity to invest in crucial services or initiatives.
Editor: The commission is slated to commence its work on December 3rd. Given the timeline, what key outcomes should we expect in the coming months?
Expert: We can expect a thorough examination of the factors contributing to the budget variance. The testimony from various stakeholders will be critical, and the commission’s report could lead to recommendations for reforming fiscal policies. Depending on the findings, we may see calls for tougher financial regulations or even changes in leadership within the budget department.
Editor: Lastly, what do you think this situation means for public trust in the government’s fiscal management?
Expert: Ultimately, public trust hinges on transparency and accountability. If the commission can effectively address the current budget issues and restore confidence in the planning process, it could enhance trust. However, continued discrepancies may exacerbate skepticism among citizens about the government’s ability to manage finances responsibly.
Editor: Thank you, [Expert’s Name], for sharing your insights today. It’s clear that the upcoming weeks will be crucial for the French government’s budget process. We look forward to seeing how events unfold!
Expert: Thank you! I’m looking forward to the developments as well.