Local authorities have “no reason to be called upon” to make up the State deficit, the Association of Mayors of France (AMF) reacted on Tuesday after the announcement by INSEE of a deficit to 5.5% of GDP in 2023, far from the expected 4.9%.
“We weigh the height of zero in the public deficit since according to the figures we were in surplus of 4.8 billion euros in 2022, that is to say that not only do communities not weigh on the deficit but they attenuate it and to my knowledge, the municipalities are helping to reduce the public deficit in 2023″, declared Andr Laignel, first deputy vice-president of the AMF.
For 2023, the deficit of local public administrations, which represents 20% of public spending, increased by 8.9 billion euros, according to INSEE. In particular, “the sharp decline in onerous title transfer fees – commonly called “notary fees” – allocated to municipalities and departments after several years of great dynamism and the acceleration of operating and investment expenditure”. But this category only imperfectly reflects the situation of communities because it includes in particular the Société des grands Projets (formerly Société of Greater Paris) or Ile-de-France Mobilits.
We have already participated a lot in financial solidarity
Concerning the debt, which decreased less than expected in 2023 (110.6% compared to 109.7% expected), “we represent less than 10% of the public debt and it is we who pay it, it costs absolutely nothing to the State”, added Mr. Laignel, also president of the local finance committee. According to him, “the cumulative drop in the overall operating allocation (main allocation of the State to communities, editor’s note) in constant euros has represented an effort of 70 billion euros since 2014.
“We have already participated a lot in financial solidarity, so we have no reason to be involved in obvious budgetary draping which is the sole responsibility of the State”, he criticized in the name of the AMF, estimating that the progressive abolition of the housing tax and the contribution on the added value of businesses (CVAE) ” cost the State 35 billion euros.
Questioned on Tuesday on RTL, the Minister of the Economy Bruno Le Maire said he was opposed to any increase in taxes to bring the French public deficit below 3%, his objective for 2027. On the other hand, he called for a “taking of collective conscience on the need to make choices in all our public spending”, citing in particular local authorities.
“I remind you that the Constitution provides that the administration of local authorities is free. The State must stop considering communities as subcontractors and their budget as adjustment variables,” replied Mr. Laignel. A high local public finance council, created in September to streamline the often tense exchanges between the State and associations of elected officials, is due to meet next week.
“It is not a question of constraining local public finances and local authorities” but of “looking with them at exactly where savings are possible”, explained Bruno Le Maire on Tuesday during a press briefing, calling on them to implement “freely” these savings measures.