When presenting the text of the French Finance Bill (PLF), ministers were quick to warn that it would be “perfectible. Indeed, in mid-October, the new Barnier government had only two weeks to prepare the 2025 budget, against a backdrop of spiraling deficits. A matter of urgency, the new executive struck hard, including some controversial savings measures in the text in order to reach its target of 40 billion in spending cuts for next year.

Since then, however, parliamentary debate in an explosive political atmosphere, as well as repeated warnings from businesses and other stakeholders such as local elected representatives, have finally convinced the government to modify this initial version. In an interview with Echos on Sunday, Economy Minister Antoine Armand announced his intention to “mitigate” the increase in employer contributions on low salaries provided for in Budget 2025, in exchange for “ other efforts “ which could affect working hours. This measure, which consisted of revising the employer’s payroll tax relief grid in order to recover up to 5 billion euros, was a serious headache for the Macron camp. In fact, some ministers were maneuvering to have it removed from the 2025 budget. A source close to the matter confirms that the Prime Minister intends to soften this measure in the final text for which he will take responsibility via a 49.3.

Read also
Social Security budget: the commission decides against the reduction in employer contributions

As for the savings measures that will save part of the reduced charges, things remain unclear. However, a source close to Matignon has confirmed that “ the hypothesis put forward in recent days of the introduction of a second day of solidarity is not favoured “in short, almost buried. It has to be said that this path was far from seductive, even in the ranks of the “ common base “. In particular, some felt that it had the disadvantage of making those who were already working work harder.

“Small pensions

“Plus, blows an advisorthis has the advantage of granting a victory to the Macronist deputies”.who up until now have been vociferously supportive of the budget presented by the Barnier team. It is partly for political reasons that the government would also consider “letting go on a number of savings planned for the budgets of local authorities. In the PLF, the government has earmarked some 5 billion euros in savings on funds allocated to communes, départements and other regions. We’re going to soften certain measures,” admits someone close to the government, “particularly for the départements”.. The départements are in financial difficulty as a result of the real estate crisis, which has one of their main sources of revenue: property transfer taxes (droits de mutation à titre onéreux). (DMTO) or notary fees.

The measure the most criticized but also the most emblematic of the budgetary texts for 2025 should also be reviewed and corrected in the final version. The six-month postponement – from January 1 to July 1 – of pension increases, which is supposed to save Social Security 3.6 billion euros, is the focus of all the criticism. All MPs from the left, the right, the Macron camp and Liot’s independents have signed amendments to delete this article. The Rassemblement National even “a red line. In the Finance Committee, the postponement of the increase was almost unanimously removed by the deputies. And there is no reason to believe that it will be any different when the text passes through the Hemicycle.

In the face of such fierce opposition both in Parliament and in public opinion, a government source confirms that the executive is preparing to exempt the “small pensions of this cut. Thresholds of 1,200 euros, 1,600 euros or even 2,000 euros per month were mentioned during the parliamentary debates. It remains to be seen which of these thresholds the government will choose.