Why local authorities are worried about their solid finances

by time news

2023-07-04 18:00:21

All local authorities show net savings, after repayment of loans, of 27 billion euros. pixarno – stock.adobe.com

DECRYPTION – The tax reforms wanted by Emmanuel Macron have broken trust with the state.

After Elisabeth Borne’s visit to the town hall of L’Haÿ-les-Roses, Emmanuel Macron received the mayors most affected at the Élysée on Tuesday. The extreme tension of the last few days has been the occasion for the beginning of a rapprochement between the executive and the local authorities, united in the face of the unleashing of urban violence. Will this be enough to restore trust between the two parties? Given the gulf of misunderstanding that has separated them since the start of Emmanuel Macron’s first five-year term, the challenge remains daunting.

Local authorities – regions, departments, municipalities – have not digested Emmanuel Macron’s tax reforms, the abolition of housing tax and the reform of production taxes, which have broken the link between taxpayers – citizens and businesses – and their place of residence. Since then, they have not stopped complaining of having become the cash cows of an impecunious state. “Local authorities don’t have to pay for the fiscal laxity of…

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