2026 Budget: Local Authorities "shortchanged by nearly 10 billion euros," according to the CFL

On Tuesday, July 22, André Laignel, chairman of the Local Finance Committee (CFL), estimated the budgetary effort requested by the government from local authorities for 10 at nearly "€2026 billion," twice the officially announced contribution.

The government announced in mid-July that it would ask local authorities to contribute €5,3 billion in 2026 to help restore public finances, double the contribution requested in 2025.

"The increase in the CNRACL (National Retirement Fund for Local Government Employees, editor's note) is not in the 5,3 billion range, and it is already 1,4 billion for a full year," the Socialist Party mayor of Issoudun (Indre) stated at a press conference.

In addition, there is a series of budget lines published in the "offprint", a document which summarizes the credits allocated to the different ministries.

"We see 900 million less for the 'territorial cohesion' mission, 100 million less for the 'local authorities' mission, 200 million less for Overseas France. (...) I am sure I am at 9 billion without any exaggeration and I think that there will be a few hundred million more to be added," he said, criticizing a "culture of dissimulation."

"I believe that what is being proposed to us for 2026 is such an attack on the free administration of our local authorities (...) that it is justified in being rejected," declared the man who is also the first deputy vice-president of the Association of Mayors of France (AMF).

In June, he had already called on parliamentarians to censure François Bayrou's government in the event of further cuts.

Local authorities were asked to contribute €2,2 billion in the 2025 finance law, but the CFL president estimates the bill at €8,4 billion.

He also painted a bleak picture of the situation in local authorities, particularly in departments.

In 2025, "for the first time in the initial budgets of the departments, net self-financing will be negative," which means that "the departments as a whole will not be balanced at the end of the year if the budgets remained as they are," he explained.

"The cuts in 2025 will lead to considerable setbacks that will weigh on the national economy. Today, all the serious institutes tell us that we are not far from recession," he added, not doubting, if this budget were to see the light of day, "the powerful AMF would mobilize strongly."

Illustrative image of the article via Depositphotos.com.