France votes budget law to avoid collapse after prime minister’s fall

Articles 2 and 3 of the text must allow the State, Social Security and Health to take out loans in the financial markets, through their specific agencies (Agence France Trésor and Acoss), in order to avoid the cessation of pension payments , medicines, health treatments, etc. Furthermore, a decree “under preparation” will provide for the renewal of State expenditure in an amount “that could reach the same level as in 2024”, guarantees the same government source.

The bill will be examined in the National Assembly on Monday (16), according to the Ministry of Relations with Parliament. The text goes to the Senate two days later, according to a parliamentary source. Approval of the content should then take place “around ten days before the end of the year”, estimates a government source.

No opposition to vote

There is little doubt that the bill will pass both chambers. “When we look at the content of this law, there is no political reform, the objective is to guarantee the continuity of the State, therefore nothing suggests that there is a topic of contention”, judges the same source. Most of the political forces represented in Parliament have already said they would not oppose it. “We must guarantee budgetary continuity”, said the coordinator of the Unsubmissive France party, Manuel Bompard, on Wednesday, in an interview with the France 2 television channel.

The text does not establish a deadline for its own application, but it will necessarily have to be followed by a financial law at the beginning of 2025. Since the text does not respond to all the sensitive issues contained in the budget, such as tax increases and measures to support the agriculture sector.

Furthermore, “the absence of a financial law could be harmful for our European partners and for the markets, because we are not able to commit to our debt reduction path”, highlights a parliamentarian who did not wish to be identified.