Ministers to debate emergency law so France can continue to collect tax and pay expenses
The text is used to guarantee that public services will continue to function while maintaining the same constraints as in last year’s budget
Macron announced the ‘special law’ the day after Barnier resigned
Nicolas Economou / Shutterstock
A ‘special law’ text will be presented at the Conseil des ministres tomorrow (Wednesday, December 11) to ensure that taxes are collected, salaries are paid and public services continue to function in 2025. It will then be debated at the Assemblée nationale and senate next week.
The special law extends the 2024 budget rules without allowing new taxes to be added and spending to be increased.
It is the first time that such a law is likely to be used since 1979. President Macron deemed it necessary following the motion de censure against his government and the ensuing resignation of prime minister Michel Barnier.
Read more: French Prime Minister Michel Barnier resigns after no-confidence vote passes
Temporary and strict measure
The ‘special law’ is a temporary measure, intended to allow the government to keep functioning until it debates and passes a new projet de loi de finances in early 2025.
The new government is yet to be constituted following Barnier’s resignation.
It is highly unlikely that this law is not adopted as it is not ‘political’ in the sense that it is only ensuring that the government can function. Marine Le Pen from the Rassemblement National party said it is a law “we will obviously vote for”.
It allows for spending to the same level as in 2024 but not increased, meaning that any new benefits such as those promised to farmers are unable to be granted.
The law will likely have up to five articles, also allowing Acoss, the social security treasury, and Agence France Trésor to continue borrowing on the markets.
Retirement and taxes
Pensions, which are part of the social security’s budget and not the government’s, will increase in line with inflation.
Read more: Former French PM claims cartes Vitale will not work in January: it is not true
However, income tax bands will not change, meaning that many households will have to pay more taxes where their wages increased with inflation.
Some experts believe that the effect of the higher tax payments could nonetheless be effectively netted off in the longer run as the new budget, when implemented, could compensate for this.
