French Budget Cuts Spark Outrage: Local Governments Face Insolvency, Sell Public Buildings to Cope

October 22, 2024
French Budget Cuts Spark Outrage: Local Governments Face Insolvency, Sell Public Buildings to Cope
  • On October 21, 2024, the French parliament began examining the 2025 budget, which includes demands for €5 billion in savings from local governments.

  • As the National Assembly reviews the budget aimed at reducing a €60 billion deficit, local leaders are expressing deep concern over the financial impact on their municipalities.

  • Nicolas Lacroix, president of the Haute-Marne departmental council, criticized the proposed budget cuts as 'direct, unjust, and brutal,' highlighting the struggles many departments are already facing.

  • He warned that over 80 departments will encounter financial difficulties in 2025, with Haute-Marne projected to lose €7.5 million due to these cuts.

  • Lacroix cautioned that many departments, already in precarious financial situations, may face insolvency by the end of December if the proposed cuts are enacted.

  • He noted that more than 20 departments are currently experiencing significant financial difficulties, predicting that over 60 may struggle to balance their budgets for 2024 and plan for 2025.

  • In response to the austerity measures, Lacroix is listing several state-occupied properties, including the prefecture and sub-prefectures, for sale on Leboncoin.

  • This sale is part of a symbolic yet practical response to the crisis, with the listings not yet visible online due to administrative processes.

  • Haute-Marne plans to sell its prefecture, sub-prefectures, judicial palace, and several gendarmeries to meet the financial demands imposed by the budget cuts.

  • Lacroix emphasized that the French people will ultimately be the primary victims of these budget cuts, underscoring the urgency of the situation.

  • He listed several judicial buildings and gendarmeries as potential sales targets to illustrate the severity of the financial constraints faced by local governments.

  • The mayor of Verdun has threatened to resign in protest, reflecting widespread discontent among local officials regarding the government's finance bill.

Summary based on 3 sources


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