Senate Approves Bayrou’s Budget Amid Ongoing Pressure – 01/23/2025 at 08:51 – Boursorama

After extensive deliberation, the 2025 state budget proposal is poised for a Senate vote amid political uncertainty and pressure to improve public finances. Originally introduced by Michel Barnier, the budget faced setbacks but has now been taken over by François Bayrou. With significant cuts and revenue targets planned, the bill aims to reduce the public deficit. Tensions remain high, particularly with opposition parties, as the government seeks to navigate potential censure and secure necessary support for its fiscal recovery efforts.

After more than three months of deliberation, the 2025 state budget proposal is finally set for a Senate vote this Thursday. This vote carries significant weight for a government that continues to navigate its survival alongside the socialists, all while facing a backdrop of uncertainty.

Originally introduced by Michel Barnier in October, the budget faced hurdles, including rejection by the National Assembly during its first reading and a suspension following the censure of the former Prime Minister. Ultimately, François Bayrou stepped in to take charge of this finance bill (PLF), which has experienced a tumultuous passage through Parliament.

While the Social Security budget initiated the downfall of Barnier’s government, it remains unclear whether opposing parties will allow this finance bill to pass without resistance. In fact, the opposite may be true.

This budget is critical for a nation currently operating under a special law framework, as it attempts to address pressing financial challenges. The government, lacking an absolute majority in the National Assembly, is under pressure from Brussels to improve public finances.

“This is an incredibly challenging task, but it is essential. A France without a budget is stagnation personified, and it only exacerbates our deficit,” asserted government spokesperson Sophie Primas on Wednesday, emphasizing the urgency of promulgating the budget by the end of February.

Bercy is targeting a hefty 32 billion euros in cuts and an additional 21 billion euros in revenue, aiming to reduce the public deficit to 5.4% of GDP in 2025, down from the projected 6.1% for 2024.

– A Path to Recovery –

To meet its objectives, the government is likely to receive support from the Senate, which is predominantly comprised of a right-centrist coalition that endorses budgetary restraint. This supportive environment is expected to facilitate the passage of the budget proposal.

“This budget marks the beginning of our fiscal recovery efforts. We are in an urgent situation that demands recognition, without compromising our principles or crossing our red lines,” stated Jean-François Husson (LR), the general rapporteur of the budget, who is overseeing the discussions at the Luxembourg Palace.

The government may face challenges ahead, especially with the upcoming mixed joint committee (CMP) meeting on January 30, where seven senators and seven deputies will collaborate to create a unified text.

If successful, the reconciled version will need to be approved by the National Assembly during the week of February 3, potentially invoking article 49.3 and risking a new censure motion.

Having persuaded the socialists to refrain from censure during his general policy statement, François Bayrou is optimistic about extending this tentative agreement to the budget, which includes measures like cutting 4,000 teaching positions and implementing a three-day waiting period in public services, alongside renegotiating the 2023 pension reform.

However, the socialists remain dissatisfied and plan to vote against the budget on Thursday, joined by the entire left.

– ‘Evolving the Framework’ –

“The CMP will serve as the deciding factor. By January 30, there is potential for adjustments. We are aware this budget will not be ideal, but we aim to make it as acceptable as possible,” acknowledged Patrick Kanner, president of the PS senators, emphasizing the need for further improvements.

The question of censure looms large within the New Popular Front as tensions rise. Unsubmissive members have voiced concerns regarding the socialists; if they abstain from censure, the PS deputies risk a definitive split with the NFP, according to LFI.

It’s crucial for any agreements between Bayrou and the PS to be incorporated into the budget.

Moreover, the right is poised to contest these changes vigorously: overnight, the LR party dismissed many concessions made to the socialists, opposing the re-establishment of 4,000 teaching positions, 500 roles for France Travail, and the addition of 924 positions within the Ministry of Justice. Nevertheless, these provisions could still be reintroduced in the CMP.

As the budget examination nears its conclusion, the government has suggested several last-minute cuts across various ministries. These include reductions of approximately 800 million euros in development aid, over a billion in housing and ecology, 600 million in research and higher education, and a notable decrease in the sports budget following the Olympic year, sparking outrage among the PS.

Related Articles