France's Caretaker Government Proposes 3-Article Emergency Finance Bill to Avoid Shutdown

Dec 11, 2024, 11:32 AM

France's caretaker administration has introduced an emergency finance bill, known as the 'special law,' to avoid a government shutdown. This legislation, presented in the Council of Ministers on Wednesday, aims to ensure the continuity of state services starting January 1, 2025. The bill, which will be examined by the National Assembly on Monday and the Senate on Wednesday, authorizes the collection of taxes and allows the state and social security to borrow funds to finance public services. Laurent Saint-Martin, the resigning Budget Minister, emphasized that the law is necessary to prevent a shutdown, projecting a public deficit beyond 6% by the end of 2025. The bill does not include any tax increases for January, according to Saint-Martin. Meanwhile, Eric Coquerel, the LFI president of the Finance Committee, expressed intentions to amend the bill to secure the indexing of income tax brackets to inflation. The legislation has garnered support from various political groups, with the Socialists and EPR indicating their approval, though they stressed it is not a full budget and won't directly address public deficits. The bill consists of only three articles, designed to be efficient.