The government makes 10 billion euros in budget cuts

Justified by less vigorous growth expected in 2024, the decree published in the Official Journal "cancels" ten billion euros of budgeted expenditure in areas ranging from ecology to higher education including schools, justice, defense, territorial cohesion and public development assistance.

Among the "sustainable ecology, development and mobility" programs, the one entitled "energy, climate and post-mining" is cut by one billion euros, while the "fund for accelerating the ecological transition in the territories" loses more than 400 million.

Raised in September to the rank of "absolute priority", the budget allocated to the ecological transition is being reduced, with a reduction of one billion euros in the aid envelope to better heat and better insulate MaPrimeRénov housing.

Furthermore, the categories "work and employment", "research and higher education" and "school education" are concerned respectively by 1,1 billion, 900 million and 690 million euros in canceled credits.

Public development aid is cut by 740 million euros, assistance with access to housing loses 300 million, culture 200 million, the national police 134 million, the prison administration some 118 million and defense 105 million.

Discussed for several months, the implementation of a flat-rate contribution for employees to the personal training account (CPF) has now been decided.

The government announced these "immediate" savings on Sunday to respect its budgetary commitment, amid fears of a downgrade of its financial rating in the spring.

“Social brutality”

According to the Minister of the Economy Bruno Le Maire, it is a question of demonstrating "responsibility", while the government excludes any tax increase to consolidate public finances.

Objective: reduce the public deficit to 4,4% of gross domestic product (GDP) in 2024, facing a growth forecast lowered to 1%, compared to 1,4% previously.

These clear cuts sparked outraged reactions.

The president of the Finance Commission of the National Assembly Éric Coquerel (LFI) deplored on

For Yvan Ricordeau, national secretary of the CFDT, France's leading union, "there is a strong expectation to have strengthened public services, the government is instead choosing to undermine them all a little more". The general secretary of the CGT Sophie Binet proposes instead to “tackle the 200 billion in aid to businesses”.

For the socialist deputies, "to the democratic brutality" of the decree "is added social brutality", while "the government could have called on the richest through the reestablishment of the ISF or reversed the abolition of taxes of production".

The Association of Mayors of France regretted decisions "in contradiction with the stated priorities" and the downward revision of credits for "numerous public policies" carried out by communities.

The Departments of France have warned “about the sustainability of the French social model and are asking that their revenues be brought into line with expenses”.

"Do more"

Faced with fears of teacher job cuts, the Ministry of National Education assured that “jobs (teaching and administrative) are not affected nor are the priority reforms announced”.

This tightening of the screws is in addition to the 16 billion savings already voted for in the 2024 budget, mainly coming from the removal of the energy shield.

A sign of budgetary difficulties, a source at the French Ministry of the Economy reported on Monday that it would "probably be difficult to meet" the target of a deficit of 4,9% of GDP for 2023.

The balance will be all the more difficult to find as new spending has been announced to support farmers, hospitals or Ukraine.

The cuts are therefore intended to continue. The government has not ruled out an amending finance bill in the summer, and has already warned of the need to find at least 12 billion euros in additional savings in 2025.