A “special law” renews the 2024 budget identically to 2025, what that means

A special law renews the 2024 budget identically to 2025

The budget proposed by the Barnier administration not having been voted on, a special law was adopted by decree to renew the 2024 budget identically. A necessary measure while awaiting the vote on the 2025 budget, but not without consequences.

The government was unable to present a budget before January 1, 2025. However, to function, the state needs a roadmap. So, a “special law” was promulgated by decree and appeared on December 31 in Official Journal : “Following the promulgation of a special law on December 20, this decree makes it possible to renew the appropriations opened in the initial finance law for the year 2024 by Parliament.” Concretely, it is the 2024 budget which was renewed for 2025, while waiting for the government and Parliament to agree on a budget.

This should correspond to state expenditure of 492.9 billion euros, as indicated by the previous government of Michel Barnier. François Bayrou announced that he hoped for the adoption of a budget “in mid-February”, without being “sure of getting there”, especially as he assured that he wanted to start from the “copy that was voted on ” in Parliament before the censorship of Michel Barnier. In addition, the new Prime Minister assured that in the event of a blockage in the Assembly, he would prefer to use the 49.3 card than to pass his budget by ordinance. The same actions generally having the same effects, this could also lead to censorship of his government, especially since the left has mainly announced that it would censor it, which would further postpone the adoption of a new budget.

The “special law” passed by decree allows the executive to collect taxes, spend credits on the basis of the 2024 budget and borrow to finance the State and Social Security.

What consequences?

But the 2024 budget is no longer adapted to the realities of 2025. Its renewal will therefore have consequences directly felt by the French, pending a possible modification with the adoption of a 2025 budget. For example, restaurant vouchers will no longer be able to be used for shopping. Indeed, the latest motion of censure prevented the rules, which date from 2022, from being extended. Concretely, it will only be possible to purchase directly consumable products, with a ceiling of 19 euros, instead of 25 euros today.

Parisian gaming clubs and their 1,500 employees will also be impacted. In fact, they were authorized to open in the capital seven years ago and the government wanted to perpetuate them, but the project fell through at the same time as the Barnier budget. The seven Parisian establishments will therefore have to close their doors while waiting for a law to perhaps be adopted in their favor. In the meantime, employees in the sector will be technically unemployed from January 1.

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