Aid for businesses, apprenticeships: avenues for savings for public finances

Commissioned by the resigning government and made public in recent days, these "public spending reviews" nevertheless constitute proposals for savings that Michel Barnier's future government team is free to adopt or not.

Business aid

In 2022, companies benefited from 99 billion euros in public aid, according to a report from the General Inspectorate of Finance (IGF).

Three billion euros of savings are possible, for example by eliminating state funding for business support missions (800 million euros), by refocusing the research tax credit (450 million), by eliminating reduced excise duties on biofuels (700 million) or diesel used by public road transport (170 million)...

Modulating VAT, by depriving certain sectors of the reduced rate of 10% and raising it to 12,5% ​​for others, would allow 7 billion euros to be collected.

State operators

Among the 180 state operators it audited (out of 408 in total), the administration detected a cash surplus of 2,5 billion euros, which the report proposes to reduce while strengthening controls.

Learning

While the cost of apprenticeship aid has increased 3,4-fold between 2018 and 2022, the administration suggests eliminating the hiring aid of 6.000 euros for bachelor's and master's levels (554 million euros in savings in 2025).

The rapporteurs also propose subjecting apprentices to income tax (459 million) or reducing exemptions from the apprenticeship tax (310 million).

Employment support

The IGF and the General Inspectorate of Social Affairs (IGAS) outline 610 million in savings "as of 2025" and 1,8 billion over the period 2025-2027, thanks in particular to the tightening of "mechanisms in favor of young people". Added to this are 140 million drawn in particular from a reduction in the share of State funding for Local Missions.

According to the mission, "these measures (...) would have an impact of less than 1.000 job losses."

Long-term conditions

Recognition of long-term illness (ALD) allows 100% reimbursement of care received in connection with the ALD, for an estimated cost of 12,3 billion euros.

The IGF and Igas propose either a two-tier ALD (400 to 600 million euros in savings) - only preventive care being covered at 100% for the least serious conditions - or an elimination of the ALD to replace it with a universal maximum remaining charge for all patients, with ALD or not (800 million in savings).

They also suggest subjecting the daily allowances of ALD patients to income tax (300 to 600 million) in full or in part.

Communities

Of the 75 billion euros in personnel costs for local authorities in 2022, two billion could be saved by acting on health and safety at work (working hours, absenteeism) or staff renewal (3% retirements each year).

On the purchasing side (51 billion euros in 2022), reducing energy consumption by 15% would generate savings of 1 billion.

In terms of investments, local authorities are encouraged to "redirect" expenditure that is harmful to the environment, take better account of "the reduction in the school population" and pool "structuring" equipment and investments at the inter-municipal level.

Absenteeism of civil servants

The IGF and Igas estimate the cost of absences for health reasons in the civil service at around fifteen billion euros in 2022 and consider it possible to save 6 billion by reducing absenteeism to its pre-crisis level (around 8 days of absence per year and per agent, compared to 14,5 in 2022).

The introduction of a second or third day of waiting for civil servants would bring in 174 to 289 million euros.

Compensating absent employees at 90% of their basic salary (compared to 100% currently) would save 900 million euros.

Youth devices

The IGF and the General Inspectorate of Education (IGESR) wish to "optimize" the reduction in the number of teachers, classes or schools in view of the expected drop in student numbers by 2027. The report proposes three scenarios.

The first "would allow the closure of nearly 600 classes" at primary school and more than a thousand at secondary school, and the elimination of more than 1.300 full-time equivalents (FTEs) at secondary school.

The second scenario envisages raising the thresholds for doubling CP and CE1 classes in priority education, leading to up to more than 2.300 class closures.

The third plans to "adapt the territorial network of schools" and identifies "1.925 schools" and "33 colleges" which could be closed "in view of their number of students".