Fewer civil servants, more taxes for large companies and the richest: Michel Barnier’s government has drastically curbed spending while resuming tax increases in its draft budget for 2025 which aims to consolidate public finances , in a very unstable political climate.
The executive detailed, this Thursday, October 10, how it intended to find “60 billion euros”, an unprecedented amount under the Fifth Republic, in the finance bills (PLF) and social security financing bills (PLFSS). ) which will be fiercely debated in the National Assembly where it is in the minority.
Information to remember
⇒ The government unveiled its draft budget on Thursday evening
⇒ The left criticizes an austerity budget, which the executive denies
⇒ As soon as the 2025 budget is presented, the rating agency Fitch could downgrade France’s rating
08:20
Medical consultations: the reduction in the Social Security reimbursement rate “is one of the options”
The reduction in the rate of reimbursement by Social Security for doctor’s consultations “is part of the options” considered, declared this morning the Minister of the Budget Laurent Saint-Martin, who considers this measure “necessary”. Asked on RTL about a reduction to 60%, compared to the current 70%, in the Social Security reimbursement rate for a consultation, the minister declared that this was “one of the options”. “I think it’s necessary,” he added.
08:15
“This is not an austerity budget, nor a fiscal bludgeoning, it is a balanced budget”
Invited on RTL this Friday morning, Budget Minister Laurent Saint-Martin defended the draft budget presented last night: “It is not an austerity budget, nor a fiscal bludgeoning, it is a balanced budget to be able to be responsible in a situation that is serious,” he assured. “It is the State which will make the first effort to the tune of 20 billion euros”, also promising that there would be “no tax increase for all individuals”.
08:00
The government takes into account the “careful look” of the rating agencies
The French government took into account, in the development of the 2025 budget, the “careful look” that the rating agencies have on the country, indicated the Minister of the Economy Antoine Armand this Friday, while Fitch must unveil its diagnosis. “When you are Minister of Economy and Finance of France, you do not make a policy for rating agencies but you obviously look at what the international climate is and how the institutes view France,” indicated the minister on France 2. “And this look is attentive” because “faced with the colossal debt that we have, faced with the deficits which continue to slip away, we must take measures”.
07:35
As soon as the 2025 budget is presented, the Fitch rating agency puts France on the grill
The Fitch rating agency will unveil this Friday its diagnosis of the French economy which could lead to a status quo or a downgrade of its rating, the day after the presentation of a draft 2025 budget determined to make 60 billion euros savings to contain the soaring deficit. The American rating agency gave France an “AA-”, the equivalent of 17/20.
During its last assessment of French finances in April – a status quo – Fitch warned of a downside risk in the event of a “significant and persistent increase in debt […] compared to GDP resulting from higher than expected public deficits.
07:15
4,000 fewer teaching positions: unions denounce a “bleeding”
“A real bloodletting”, a “scuttle of public schools”: the elimination of 4,000 teaching positions in the 2025 National Education budget, mainly in nursery and elementary school, has scandalized unions already unconvinced by the first steps of the new minister. Guislaine David, the general secretary of FSU-Snuipp, the first nursery and elementary union, denounced a “scuttle of public schools” on the social network X. “But where is the priority given to school?” she asked.
Sophie Vénétitay, head of Snes-FSU, the first secondary education union, estimated on X that “Michel Barnier is sacrificing public schools. Unworthy and irresponsible!” “4,000 positions, it’s enormous. We’re literally going head to tail, it’s scandalous,” Catherine Nave-Bekhti, general secretary of CFDT Education, protested to AFP.
07:05
The left criticizes the reduction of teaching posts and an austerity budget
“This budget is a calamity”, said the leader of La France insoumise Jean-Luc Mélenchon on Thursday evening, criticizing in particular “the 4,000 fewer positions in Education”. “After having spread poverty, here is the organization of ignorance,” he commented on the Fewer teachers compared to 2024, mainly in nursery and elementary school.
“If your children’s class or school closes at the start of the 2025 school year, you will know who to thank. Forgers and liars,” added Communist Party spokesperson Léon Deffontaines on -president of the finance committee, also denounced a project of “austerity with clear cuts in the most important budgets of our public services”.