There was little suspense.
The presentation of France's budget for 2023 remains a pivotal moment.
This Monday morning, the Minister of the Economy and the delegate for Public Accounts, Bruno Le Maire and Gabriel Attal, unveiled the details of a “protection”
finance bill
, according to the expression devoted this time. – last year, the executive spoke of a
“crisis”
budget .
The two tenants of Bercy have therefore endeavored to show that they are taking full measure of the issue of inflation, linked to increases in energy costs and which weigh on the wallets of the French;
but that they did not forget
"the issue of public finances"
, insisted the Minister of Economy, Finance and Industrial and Digital Sovereignty Bruno Le Maire, presenting the text to journalists, just before doing so in the Council of Ministers.
On the one hand, therefore, Le Maire and Attal have confirmed that the increase in electricity and gas bills at the start of 2023 will be capped at 15% (instead of 120% if no action is taken).
And that 12 million less well-off households will receive exceptional energy vouchers.
A financial effort of 45 billion euros gross for the State in 2023 – an amount reduced to 16 billion euros net if we take into account what the State will recover from the electricity companies
"who take advantage of the prices that are soaring and cannot benefit from rents”
, in the words of the minister.
Read alsoWith Gabriel Attal, behind the scenes of the preparation of the 2023 budget
The ministers also once again welcomed their decision to index the income tax scale to inflation, thus avoiding an increase of 6.4 billion euros in additional levies for households.
As well as the abolition of the CVAE – in two years, however, a decision that greatly displeased companies.
"This should allow companies to relocate"
, insisted the boss of Bercy, letting go that
"it would still be a paradox if the country were the most attractive for foreign investors and not for French companies"
.
Danger of rising rates
On the other hand, the ministers reiterated their desire not to dig the hole any further in the coffers of the State, despite the difficult economic context – the forecast of 1% growth retained by Bercy for 2023 not being elsewhere not guaranteed… Thus, they assure that the public deficit will be well maintained at 5% of GDP next year, at the same level therefore as in 2022. The debt would not change either at 111.2% of GDP after 111 .5% in 2022.
"Protecting the French also means protecting our public accounts"
, emphasizes Gabriel Attal.
"Growth, activity and full employment: this line has always been ours, to fall below 3% public deficit in 2027
," adds Bruno Le Maire, who disputes those who doubt the government's desire to reduce public expenses.
We got out of it whatever the cost, it's not to come back to it and I refuse to be told that we are falling into the easy way or that we are not responsible
.
The Minister of the Economy thus promises that any new expenditure will be financed to the nearest euro.
Read alsoBruno Le Maire and Gabriel Attal present a budget already criticized from all sides
Bercy anticipates a drop in expenditure in volume (excluding inflation) of 2.6% over 2022-2023.
And plans to reduce the weight of public spending from 57.6% of GDP to 53.8% over the five-year term,
“an unprecedented effort for 20 years”
.
“
This firmness and this consistency are in any case essential when we have 10-year borrowing rates at 2.5%
,” insists the Minister of the Economy.
Bruno Le Maire finally assured that the reforms to which the executive had committed will be well implemented: that of unemployment insurance, already on track, but also that of pensions.
“It is entirely possible to carry out fair and effective reform within a reasonable timeframe.
And all the more so since the President of the Republic has received a mandate from the French people to carry out this reform”
.
The Minister
“does not rule out structural reforms either to reduce expenditure – on employment policy, housing, for example, there may be better efficiency of expenditure”
.
Read alsoRetirement reform, price hikes, budget .... What to remember from the interview with Elisabeth Borne
In the meantime, 10,000 additional civil servants will be recruited next year to meet the priorities set out by Emmanuel Macron, namely Education, Security and Justice.
"This budget holds firm the economic line that has always been ours, valorization of work, competitiveness of companies, protection of the French, energy transition"
, concluded Bruno Le Maire.
In any case, the text presented is a trial by fire, in a context of a relative majority in the National Assembly and while the executive is at the same time presenting its social security financing bill (PLFSS) in which could be introduced by amendment the controversial pension reform.
The government wants for the time being to concentrate on
“the narrow way”
of negotiation with the oppositions, without excluding the recourse to 49-3 to pass in force on the text.
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