The National Assembly of France approved this Monday a transitional law, which prevents the State from going into paralysis and being able to continue making payments, collecting taxes and continuing to borrow in the markets. Unlike Spain, in the neighboring country the Budgets are not automatically extended and a ‘special law’ is needed that allows it to continue operating and not enter into “payment suppression.” Something similar to what happens in the United States. It is the National Assembly (Lower House) that must approve this Constitutional mechanism.
This ‘special law’ was mentioned by the President of the Republic, Emmanuel Macron, during his television intervention before the French on November 5, after the fall of the shortest Government in the history of France, headed by Michel Barnier, at the hands of a motion of censure. It lasted only six months and with its departure, the Budget project for 2025 fell.
The text endorsed by the Lower House will now go to the Senate where it will be voted this Wednesday, December 18, with a view to its final approval.
This legislative tool provides time for the new Government, headed by the liberal François Bayroudoes not have to prepare a new public accounts project at the beginning of 2025.
Article 47 of the French Constitution provides that “the Government urgently requests authorization from Parliament to collect taxes” and opens by decree the expenses necessary for the functioning of the State.
This ‘special law’ will allow the Government to do the minimum. That is, collect taxes as established in the 2024 accounts, without applying the new fiscal measures that were planned for 2025, which provided for savings in public spending of 40,000 million and the collection of 20,000 million based on increases in taxes and tributes. specials.
“Public services are guaranteed and companies will be able to continue working,” Macron said in his television intervention collected by elEconomsita.es.
The 2024 Budget project was, precisely, the one that led French public accounts to have a runaway deficit that will close this year, according to the forecasts of the previous Government. at 6.1% of GDP. That is, double what Brussels demands. And a debt that will rise to 120% of GDP at the end of the year, when Brussels asks that it not rise above 60%.
The document was expected to go ahead, since the majority of forces present in the Lower House, including the far-right National Group led by Marine Le Pen, assured that they would vote in favor of the document.
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