Budget compromise seems unlikely

Philippe Juvin, a key figure in France's legislative finance discussions, has voiced doubts about finding a compromise on the 2027 state budget. He believes the Assembly, the lower house of France’s parliament, does not have the necessary majority to approve the government’s proposal in a formal vote.

Article 49.3 could be used

Juvin suggested the government consider using Article 49.3 of the French Constitution, which allows a budget to be passed without a vote, provided no motion of censure is filed. This move would bypass the need for a majority vote, but it carries the risk of the government being overthrown if the budget is later rejected.

Budget debate continues without a clear end

The budget discussions in the Assembly are ongoing without a defined conclusion. Deputies are currently reviewing the Social Security Financing Bill (PLFSS) but have not yet completed their discussions on the revenue section of the state budget (PLF), due to strict constitutional deadlines.

Public deficit concerns raised

Juvin stressed the importance of reducing public spending, pointing out that the initial review of the revenue section of the state budget had led to a 10 billion euro increase in the public deficit. He emphasized that reducing spending, improving efficiency, and increasing work should be priorities, with deficit reduction taking precedence over introducing new taxes.

Amendment proposed for clearer budget breakdown

Juvin also proposed an amendment to change how public accounts are presented, aiming to clearly separate state expenditures, expenses by local governments, and costs related to social protection. He calculated that of the 5% public deficit projected for next year, 2.2 percentage points would come from the social sector, 1.8 percentage points from local governments, and 1 percentage point from the state itself.