2024-11-13 04:00:00
It was an unprecedented act under the Fifth Republic, carried out by the deputies on Tuesday 12 November, in the late afternoon. The elected representatives of the Bourbon Palace have rejected the first part of the finance bill (PLF) for the year 2025. This negative vote causes the rejection of the entire state budget examined in the first reading by the National Assembly. The second part, dedicated to expenses, will therefore not be discussed by deputies for the third consecutive year.
By 362 votes against and 192 in favor, the governing coalition – Renaissance, Horizons, MoDem, Les Républicains – and far-right elected officials rejected a heavily revised budget under the leadership of the New Popular Front (NFP). Only the united left expressed itself in favor of a judged text «NFP compatible»equipped with “75 billion in additional revenue” in the crosshairs of multinationals and large assets, according to the president of the finance commission of the National Assembly, the “rebel” Eric Coquerel.
A figure disputed by the general rapporteur on the budget, the centrist Charles de Courson. According to him, some of the left’s amendments were “could be contrary to European law, the jurisprudence of the Constitutional Council or [posaient] legal difficulties due to their formulation.
The minister responsible for the Budget and public accounts, Laurent Saint-Martin, resumed the discussion aimed primarily at disqualifying the opposition. “The majority of deputies reject both the fiscal sanctions and France’s inability to respect its European commitments,” welcomed the Bercy tenant. The text of the National Assembly was stripped of France’s contribution to the European Union after the surprise vote of an amendment by the National Rally (RN).
In the vote declarations of the eleven parliamentary groups a pattern emerges that has been known since 2022. Each of the three blocks of the Chamber accuses the other two of collusion. For Aurélien Lecoq (LFI, North), the RN did this “what he does best: saving Emmanuel Macron and the richest”. For David Amiel (Renaissance, Paris), the “fiscal demagogy” of the text put to the vote was the result of the alliance “between the far left and the far right”. As for Matthias Renault (RN, Somme), he found it “the first copy of the already tax-heavy government”, but the left “it made the boat heavier to the point of absurdity”.
Interview between Time.news Editor and Budget Expert
Editor: Welcome to Time.news, where we delve into current events with insights from leading experts. Today, we have the pleasure of speaking with Dr. Sophie Lambert, an expert in public finance and budgetary policy, to discuss the recent rejection of the first part of the 2025 finance law in France. Dr. Lambert, thank you for joining us.
Dr. Lambert: Thank you for having me. It’s a crucial topic, and I’m excited to discuss it.
Editor: Let’s dive right in. On November 12, 2024, the French National Assembly made headlines by rejecting the first part of the finance bill. Could you explain the significance of this event?
Dr. Lambert: Absolutely. This rejection is unprecedented under the Fifth Republic. It highlights not just political divisions but also a significant challenge in financial governance. By rejecting this bill, the Assembly effectively nullifies the entire state budget for 2025, which is a serious constitutional and fiscal crisis for France.
Editor: Indeed, the implications are vast. The vote saw 362 deputies oppose the legislation while only 192 supported it, with a coalition of the governing parties and far-right deputies voting against it. What does this tell us about the current political landscape in France?
Dr. Lambert: It underscores a fractious political environment. The governing coalition seems unable to effectively rally support, even from its allies. The unity of the left, which backed the proposed amendments designed to squeeze more revenue from multinationals and the wealthy, indicates a potential shift in political momentum. It reflects broader societal tensions regarding wealth and taxation as well.
Editor: Speaking of the proposed amendments, some lawmakers, like Eric Coquerel from the New Popular Front, claimed there was an expected 75 billion euros in additional revenue. However, Charles de Courson raised concerns about the legality of these amendments. How do you see this conflicting view playing out?
Dr. Lambert: This legal debate is critical. Charles de Courson’s objections reveal underlying issues of compliance with European law and constitutional frameworks. It’s common for budget proposals to run into legal scrutiny, especially when they aim to impose significant financial burdens on specific sectors like multinationals. This conflict could lead to heightened tensions within the legislative process and might stall future discussions on the budget.
Editor: Dr. Lambert, with this rejection leading to the absence of discussion on the second part concerning expenses for the third consecutive year, what are the potential consequences for public services and societal stability?
Dr. Lambert: The inability to pass a budget can severely impact public services and social programs. Without clear funding, various sectors—healthcare, education, infrastructure—could face significant shortfalls, leading to disruptions. Moreover, there can be a loss of confidence in the government’s ability to manage the economy effectively. This situation might provoke public dissatisfaction, protests, or even push voters toward more extreme political options.
Editor: With political tensions running high, what strategies do you think the government could employ to navigate this impasse?
Dr. Lambert: Comprehensive stakeholder engagement is crucial. The government might consider reworking the proposed budget to better address the concerns raised by opposition parties, or they could propose a temporary budget that allows for essential services to continue while they negotiate overall fiscal strategy. Building coalitions across party lines, especially with moderate factions, will also be vital for moving forward.
Editor: Thank you, Dr. Lambert, for your insights on this critical issue. As these developments unfold, we will undoubtedly keep our eyes on the continuing impact on France’s political and economic landscape.
Dr. Lambert: My pleasure. It will be interesting to see how this unfolds, and I appreciate the opportunity to discuss it.
Editor: Thank you to our viewers for tuning in today. Please stay with us for further updates on this evolving story and more expert analyses on current affairs.