Emmanuel Macron announced plans to present a “special law” to Parliament by mid-December to ensure the continuity of public services amid challenges in adopting the 2025 budget. Despite political hurdles and the rejection of the Social Security financing bill, the law aims to maintain tax collection and facilitate essential funding. Macron is optimistic about gaining parliamentary support, while discussions continue on provisions to aid Social Security and prevent increased taxes for millions of citizens.
Macron’s Special Law Proposal for 2025 Budget
In a recent televised address, Emmanuel Macron announced plans to submit a “special law” to Parliament before mid-December. This announcement came after the censure motion against Prime Minister Michel Barnier’s government was passed, which utilized Article 49.3 to approve the Social Security financing bill (PLFSS). As deputies are currently reviewing the 2025 budget, Macron emphasized the importance of this special law to ensure “the continuity of public services and the functioning of the country.”
Challenges and Solutions for the 2025 Budget
The initial timeline for adopting the 2025 budget aimed for its publication in the Official Journal before the New Year. However, the current political landscape, marked by a lack of government and the rejection of the PLFSS by deputies, complicates this goal. Despite these challenges, the risk of a shutdown similar to the American model has been dismissed, with legal measures in place to navigate the situation.
According to Article 45 of the organic law concerning finance laws (LOLF), two measures are available: a vote on a partial bill related to the financial aspects of the finance bill, with the second part to be voted on in January. Macron’s chosen path involves submitting a special law project before December 19, enabling the state to continue collecting existing taxes until the annual finance law is approved. This legislation will follow an “accelerated procedure” to ensure its passage by year-end.
Once the special law is enacted, it allows the government to issue “decrees opening the credits applicable only to the services voted,” ensuring essential funding for public services continues as approved by Parliament in the previous year. Macron clarified that the decisions made for 2024 would be implemented in 2025, guaranteeing the operation of public services and assisting businesses during this transitional period.
Despite the focus on the special law, the groundwork laid by parliamentarians and Barnier’s government for the PLF 2025 remains in consideration. The LOLF indicates that the issuance of decrees does not halt discussions on the finance bill for the year. Macron is determined to expedite the process, stating that the newly formed government will be tasked with preparing a new budget promptly to facilitate essential investments in defense, justice, law enforcement, and support for struggling farmers. Adjustments to the budget can be made throughout the year via rectifying finance bills if necessary.
For the special law to take effect, parliamentary approval is required. Macron expressed confidence in the emergence of a majority to support it. Current attitudes among deputies appear to be more conciliatory, with estimates suggesting the special law could sustain the government for four to six weeks while awaiting a new budget. Marine Le Pen, leader of the Rassemblement National, has indicated her support for the special law following the censure vote.
While the special law primarily aims to allow for continued tax collection, the executive branch is contemplating the addition of further provisions to facilitate borrowing for Social Security and other financial institutions. There are also discussions around amending the law to prevent an influx of 380,000 new taxable households, crucial for maintaining the income tax scale adjusted for inflation. Without such measures, nearly 18 million French citizens could face increased taxes, as highlighted by Barnier, although concerns regarding potential unconstitutionality have been raised within the government regarding this proposal.