France introduces a 2.5B euro financial levy on local governments, sparking fierce backlash over its impact on public services and finances.
New tax on local governments introduced
The French government has introduced a new financial levy called the "progressive contribution to the budget effort" (CPEB) as part of the 2027 Finance Bill (PLF). This measure aims to involve local authorities in improving public finances by collecting 2.5 billion euros from them.Local officials strongly oppose the tax
Local elected officials have strongly criticized the new levy, calling it "disproportionate" and "abusive." Jean-François Debat, the mayor of Bourg-en-Bresse and president of the Local Finance Committee, led the opposition, while the Association of Mayors of France described the measure as "an unprecedented withdrawal" from local budgets.Criticism focuses on the definitive nature of the tax
Elected officials are particularly concerned that this tax is definitive, unlike previous years when some of the money collected was to be returned. This change has raised fears about delayed projects, reduced local investments, and weakened public services. The Senate, which represents local authorities in Parliament, has also warned the government about the potential negative effects of the tax.Government claims the tax will mainly affect wealthy communes
According to the Minister of Public Accounts, the new levy will mainly affect the wealthiest communes, while small and financially struggling localities will be exempt. In the Saône-et-Loire department, the total contribution amounts to 12,127,215 euros, with different sums allocated to various intercommunalities and communes.Detailed breakdown of contributions in Saône-et-Loire
Each intercommunality and commune in Saône-et-Loire has a specific contribution under the CPEB. For example, the CC Saône Doubs Bresse is required to contribute 93,059 euros, which is 0.57% of its operating revenues, while the CA Le Grand Chalon is expected to pay 4,079,389 euros, or 1.84% of its operating revenues. These figures vary widely across the region.