Kick-off at the Assembly of the 2024 draft budget, before a 49.3 “fairly quickly”

In the absence of an absolute majority at the Palais Bourbon, the constitutional weapon of 49.3 "will be activated quite quickly", warns a ministerial source, in order to have the first part of the finance bill (PLF) for 2024 adopted without a vote. From Tuesday night? Rather “from Wednesday”, according to an advisor.

More than 5.000 amendments were tabled on this first part devoted to state revenue. It is a “record” for this component, “it makes the examination impossible”, judges the general rapporteur Jean-René Cazeneuve (Renaissance).

Like last year, the government should use 49.3 a total of ten times to pass the State budget (PLF) and that of Social Security (PLFSS) before Christmas, with the possibility of retaining or discarding amendments of his choice.

The oppositions will be able to respond with motions of censure, with very low chances of success as long as the LR deputies do not join them. The RN will “obviously” submit its own, warned Marine Le Pen on Tuesday on France 2, hoping for a “burst of courage” from the Republicans.

For its part, the right is demanding more drastic spending cuts. In a counter-budget presented on Tuesday, LR proposes 25 billion euros in savings, pleading in particular to reduce the amount of unemployment compensation by 6 billion euros.

The examination in the Finance Committee gave a foretaste of the battles to come, with a series of disappointments for the Macronists and a rejection of the text, which could encourage Elisabeth Borne not to let the debates drag on in the hemicycle .

“We have already had 40 hours of debate in committee,” the Minister of Relations with Parliament, Franck Riester, put into perspective on RFI, explaining that the government “will use the means at (its) disposal”.

Tensions are crystallizing in particular on the subject of housing. Many elected officials, including those in the presidential camp, are alarmed by a "social bomb", between the cost of rentals and the mounting difficulties in accessing real estate loans, as interest rates are so high.

“Tax niche”

To revitalize the sector, the Minister of Public Accounts, Thomas Cazenave supports certain proposals from the allies of the presidential camp, MoDem and Horizons, such as the reduction from 71% to 50% of the reduction on income from furnished tourist accommodation (Airbnb type), while many coastal towns complain about the lack of available housing, due to the explosion of short-term rentals.

Insufficient for the left which would like to attack this “Airbnb tax niche” more strongly.

The MoDem, certain Renaissance and the oppositions are also putting pressure on to prevent the government from refocusing the “zero interest loan” system in “tense areas”.

Another big piece, the left wants to return to the charge on "tax justice", by calling for taxing the "superprofits" of large companies.

Left-wing elected officials readily support the proposals of the head of MoDem deputies Jean-Paul Mattei, who last year called for a tax on "superdividends" and this year calls for an increase in taxation during buyouts by the largest companies. of their own actions.

But the government, attached to its pro-business policy, rejected the amendment on superdividends last year, despite its adoption in the chamber.

At the PS, Christine Pirès Beaune will resume her standoff over the care of people in nursing homes, after success in committee. She asks to replace a tax reduction with a tax credit, accessible to the most modest.

But the amendments “breaking the balance” of the budget will not be accepted, Minister Thomas Cazenave has already warned. The government is juggling between its promises of savings, investments in the ecological transition, fuel allowances and an increase in the number of civil servants. Its growth forecast of 1,4% for 2024 is also considered “high” by the High Council of Public Finances.

The Minister of the Economy Bruno Le Maire hoped that one billion euros of additional savings would be included in the 2024 budget "at the end of the parliamentary work", beyond the approximately 16 billion already planned by the executive. .

LR proposes 25 billion EUR in savings and 10 billion in tax cuts

“Our country is the dunce of the EU”: the Republicans (LR) presented their counter-budget for 2024 on Tuesday in order to straighten out public finances with 25 billion euros in savings, particularly on unemployment and more than 10 billion tax cuts for households and businesses.

“We want to be the party of tax cuts and wage increases,” said LR boss Eric Ciotti during the presentation to the press of the counter-budget drawn up by the party and published on the occasion of the start in the National Assembly of the examination of the finance bill for 2024.

According to the right, its measures would allow the State to reduce the public deficit to 4% of GDP next year, against 4,4% planned by the government, in order to accelerate France's return below the 3 mark. %.

Describing the country as a "dunce", the president of the LR group in the National Assembly, Olivier Marleix, assured that if public finances were not rectified, France will be the "last" to return to 3% of GDP in 2027 .

“The objective of this counter-budget is to bring about a reduction in compulsory deductions (...) in the service of the competitiveness and purchasing power of the French,” explained Mr. Ciotti, who pleads for a reduction for billion-euro companies from the CVAE, a production tax that the government has started to reduce.

For households, LR notably proposes lowering the price of fuel by 10% by reducing taxes, as well as a reduction in inheritance tax.

To deal with the "worrying" drop in the birth rate, Annie Genevard, the general secretary of the Republicans, plans to "increase the family quotient to 2.750 euros per half share" compared to 1.759 euros in the draft budget, a measure which should benefit 3 million tax households.

She also proposed restoring the “universality” of family allowances and “from the first child”.

For the reduction in spending, MP Véronique Louwagie assured that “structural reforms” were essential, in particular to reduce the amount of unemployment compensation by 6 billion euros.

LR also advocates the creation of a “unified system of solidarity benefits by grouping together a certain number of allowances” for savings of 2 billion.

On immigration, the party proposes to reduce by 700 million euros the cost of state medical aid (AME) for undocumented immigrants, in order to "reduce the attractiveness for irregular immigration of a model today without control,” explained Mr. Ciotti.