France

The seven hotspots of the 2023 budget – France

  • 1 The tariff shield

  • The tariff shield, which aims to limit the rise in electricity and gas bills to 15% at the start of 2023, may not be enough in the eyes of the opposition. But as planned, it will already cost 16 billion euros to public finances, underlines the government. And this, once deducted the contribution of renewable energy producers, which have become very profitable thanks to the soaring prices per kilowatt hour.

  • 2 The taxation of superprofits

  • The Nupes and the RN are pushing for a tax on “superprofits”. Divided on the question, the government hopes to find a solution on a European scale (a measure concerning the energy sector is under study). For the opposition parties, an additional resource must be found beyond this single sector of activity. The debates promise to be lively.

  • 3 Debt burden

  • The debt burden is the expense that is expected to increase the most. “It will cost us 51.7 billion euros in 2023”, specified, Sunday, the Minister of Public Accounts, Gabriel Attal, in the Journal du Dimanche. To give an idea, the State will devote 60 billion to school education in 2023, according to the spending ceilings envisaged by the Ministry of Finance last August. The subject of the debt will inevitably agitate the Parliament, while the interest rate of the French 10-year loan is around 2.5%, a record level since January 2014.

  • 4 Inheritance rights

  • Should inheritance tax be reduced? The majority hesitate. Within it, some plead for such a reform, in order to send a signal to the Republicans. Others consider it pointless to burden an already complicated 2023 budget, since the right is not in a constructive position.

  • 5 Local authority finances

  • To save money, the government has decided to spread over two years the abolition of the contribution on the added value of companies (CVAE), a production tax which employers expected to disappear from 2023. This spreading allows it to save four billion euros next year. However, some municipalities fear that they will not receive sufficient compensation for this loss of tax resources. And, more generally, local authorities are asking for financial support to cope with soaring energy prices. Parliamentarians, particularly in the Senate, will not fail to relay this claim.

  • 6 Pension reform

  • Unthinkable two weeks ago, the hypothesis of a “parametric” reform (legal age or contribution period) in the Social Security financing bill (PLFSS) arose thanks to the latest report of the Council of direction of pensions. The measure does not appear in the initial text – nor, therefore, in its impact study – but could be added by amendment, during its examination in the Assembly in October. However, the executive did not decide. We should know more about the outcome of the meeting, scheduled for this week, between the leaders of the majority and the ministers concerned.

  • 7 Managing the Covid crisis

  • On the verge of an eighth epidemic wave, and a new vaccine reminder campaign this fall, it is difficult to imagine stopping the costs on December 31. The budget should therefore logically include a provision for tests, vaccines, sick leave and other additional hospital costs attributable to the covid crisis. It remains to properly calibrate this envelope, so far underestimated in large widths.



    letelegramme Fr Trans

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