The left’s efforts to shape the 2025 budget faced a major blow when the Assembly rejected the ‘NFP compatible’ budget version, largely due to government coalition and National Rally votes. This setback delays the budget plan, even as the government aims for significant savings. Budget Minister Saint-Martin expressed disappointment while cautioning against heavy taxation. As focus shifts to the Senate, where conditions are more favorable, political tension remains high, with the left planning a censure motion against the government.
The Left’s Budget Challenge: A Rejection in the Assembly
The left’s attempts to influence the 2025 budget have hit a significant setback. On Tuesday, the ‘NFP compatible’ version of the budget was turned down in the Assembly, primarily by votes from the government coalition and the National Rally. This decision now paves the way for the government to present its proposal to a Senate that is perceived to be more accommodating.
In a surprising turn of events, the Assembly rejected the ‘revenue’ section of the finance bill (PLF) with a vote tally of 362 against 192, effectively postponing the entire budget plan. This rejection came despite the ‘expenditure’ section, which includes the government’s ambitious goal of achieving ’60 billion in savings’ through contentious measures like cuts in teaching positions, not being debated.
Budget Minister Laurent Saint-Martin expressed his disappointment following the vote, while also highlighting the importance of avoiding excessive taxation.
Political Maneuvering and Future Prospects
Saint-Martin specifically pointed out the significant amendments introduced by the New Popular Front, which included new taxes on superprofits, superdividends, stock buybacks, and the wealth of billionaires, as well as levies targeting major digital corporations. These alterations have made the budget proposal what the LFI’s Finance Committee president Eric Coquerel described as ‘NFP-compatible’, estimating an added revenue of ’58 billion euros’ primarily impacting the wealthiest individuals. The government, however, criticized this as a ‘fiscal overdose’ amounting to ’35 billion euros’ that would burden everyone.
The general rapporteur of the budget, Charles de Courson from the centrist Liot group, raised concerns that many of the voted measures were unconstitutional, incompatible with EU law, or poorly drafted, potentially harming state revenues instead.
In a strategic move, the National Rally successfully removed the article outlining France’s contributions to the European Union. Nevertheless, RN deputy Matthias Renault condemned the government for allegedly allowing the left to impose excessive tax increases, leading to fiscal distress.
As the Assembly shifts its focus to the Senate, where there is a more favorable political landscape, the government is poised to negotiate and refine its budget proposal. However, the Assembly will remain a critical battleground as the finance bill will require approval from both houses, likely involving a joint committee and a final vote, potentially utilizing the 49.3 procedure in the National Assembly.
The left has already signaled its intention to respond with a motion of censure against the government, indicating that the political tension surrounding the budget is far from over.