Élysée and Parliament Renounce Budget Increases for 2025
In a significant move, the French government has announced that both the Élysée Palace and the Parliament will not pursue increases in their budget allocations for the year 2025. This decision comes amid a backdrop of proposed savings and tax increases outlined in the 2025 Finance Bill. President Emmanuel Macron's administration aims to set an example of fiscal responsibility, especially following criticisms regarding the rising expenditures of the Élysée, which reached a record high in 2023. The initial proposal had suggested an increase in the Élysée's budget from 122.6 million euros to 125.7 million euros, marking a 2.5% rise, which was deemed excessive given the anticipated inflation rate of 1.8% for 2025.
Legislative Response to Budget Amendments
As part of the budgetary process, nearly 1,900 amendments have been submitted for review by the Finance Committee in the National Assembly. A total of 1,854 amendments were filed by various political factions, including significant contributions from the New Popular Front and Republican Right groups. These amendments reflect a range of priorities, such as blocking increases in taxes on electricity and automobile penalties, as well as proposals to reform inheritance taxes. The government faces challenges from both ends of the political spectrum, with right-wing factions pushing for tax cuts and left-wing groups advocating for increased taxation on high incomes and wealth.
Fiscal Responsibility Amidst Public Scrutiny
The decision to forgo budget increases by both the Élysée and parliamentary chambers has been met with approval from various government officials, including Economy Minister Antoine Armand, who emphasized the need for all public institutions to contribute to the effort of restoring public finances. The Finance Committee has encouraged moderation in the amendment proposals to facilitate a smoother legislative process. With the examination of the budget constrained by time, the government may need to expedite the passage of the Finance Bill to the Senate, even if not all amendments have been fully debated.
