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Politics
26 January 2025

French Senate Rejects Budget, Minister Urges Compromise

Public Accounts Minister Amélie de Montchalin warns against the consequences of budget rejection as negotiations commence.

France is currently facing political turbulence as the Senate voted on January 26, 2025, to reject the proposed budget, leading to strong reactions from government officials. Amélie de Montchalin, the Minister for Public Accounts, stated during her appearance on BFM Politique on January 26, 2025, "The budget voted by the Senate does not meet the condition of being the budget of compromise." This comment followed the Senate's decision made just days earlier.

Montchalin continued, capturing the essence of the government's intentions: "It fulfills the condition of reducing the deficit, but clearly does not fulfill the condition of being the budget of compromise." The minister’s remarks radiate the deep concern about the current political environment where achieving consensus seems increasingly difficult. She emphasized the government's goal is to produce a budget which not only reduces the deficit but also avoids increasing taxes for the middle and working classes.

With only four days to go before the mixed committee’s discussion aimed at reconciling the two legislative chambers, Montchalin asserted, "This will not be the budget of the right, the budget of the left, nor the budget of the center, but rather the budget of the nation." This assertion encapsulates the challenges faced by the government, which is trying to unify various political factions under one financial plan.

The rejection of the budget may also plunge the French government back to the brink of censure. The left-wing opposition, particularly the Socialists, has been vocal about possible censure votes, warning of the ramifications of their dissent. If this happens, according to Montchalin, the state would be unable to provide necessary services, potentially leading to adverse effects on taxpayers—especially among the lower and middle classes.

Montchalin, alongside other ministers like Catherine Vautrin (Minister for Labor and Health) and Eric Lombard (Minister of Economy and Finance), has calculated the financial ramifications surrounding governmental challenges. They estimate the budget blockage could cost around twelve billion euros overall, translating to about one hundred million euros lost for each day the budget remains unpassed. These calculations demonstrate the tangible repercussions this political tussle has on the everyday lives of French citizens.

On the issue of education and social welfare, the Minister elaborated how certain provisions, such as the preservation of 4,000 teaching posts, must remain intact within the budget discussions. Montchalin remarked, “These positions must be included, alongside the additional roles necessary for France Travail, to assist those receiving RSA (solidarity income).” This highlights the government's commitment to maintaining social services even amid budget reform debates.

Montchalin also underscored the urgency of addressing healthcare funding, stating it is important to allocate funds for the National Health Insurance Fund (ONDAM), which oversees both hospital and outpatient services. She advocates for increasing the healthcare budget by one or two billion euros—a point she claims is non-negotiable if the government hopes to maintain adequate health services across France.

A looming censure threat from the opposition casts shadows over the upcoming discussions. Montchalin warns, “Should we face another censure vote next week, it could mean 600,000 French citizens will fall prey to new income taxations come March or May.” Such statements are intended to put pressure on dissenting parties, spotlighting the potentially dire consequences of continued opposition to the government's financial strategy.

French citizens feel the weight of these political maneuvers as uncertainty grows surrounding fiscal policies and the government’s ability to manage the deficit without compromising social welfare systems. Montchalin argues, "Without a budget, the state will be unable to protect the 600,000 and 18 million French citizens affected. The stakes are exceedingly high—our citizens' financial stability hangs in the balance.”

Political analysts point out the complexity at play; the combination of budgetary constraints, looming censure votes, and the diverse demands from political affiliations make reaching consensus arduous. The upcoming mixed committee meeting on February 1, 2025, is seen as pivotal, but it remains to be seen how leaders will address each faction’s concerns.

With national attention fixed on the budgetary process, every decision made by the government could significantly impact the financial future of many, especially the vulnerable populations of France. The weeks to come are expected to be charged with negotiation efforts as Montchalin and her colleagues seek to navigate this challenging budgetary impasse.