Edouard Philippe during his speech at Matignon, Thursday May 28. - Thomas Padilla-POOL / SIPA

Prime Minister Édouard Philippe presented Friday “a mechanism for offsetting tax and state revenues” from local authorities up to “around 750 million euros” which must concern between 12,000 and 14,000 municipalities. The head of government also indicated that he would provide "an additional billion euros" in funds to support the "green" investments of the municipalities, after a meeting with representatives of the associations of mayors in Matignon.

This envelope, which will be contained in the 3rd amending finance bill expected in mid-June, makes it possible to absorb part of the losses caused by the coronavirus epidemic and evaluated at 3.2 billion euros for 2020 for municipalities and intercommunalities. In total, according to government estimates, communities as a whole should see their revenues decrease by around 7.5 billion euros in 2020.

Security net

The envelope will be calculated individually, compared to an average revenue over three years (2017, 2018, 2019) in order to smooth the variations, said Edouard Philippe. "We make a guaranteed safety net for budgets, taking into account the real losses which are fully compensated", added the Minister of Cohesion of the Territories Jacqueline Gourault, welcoming this "emergency response", part of which will be paid "this fall".

This measure "of an unprecedented scale" according to Edouard Philippe, therefore targets the tax revenues of municipalities and inter-municipalities (in particular the land assessment of businesses, fraction of the assessment on the value added of businesses) and state (especially parking revenues) . However, it does not take into account other tariff revenue, such as school meals, crèches, swimming pools, etc.

Isolated expenditure

The head of government also announced that he would endow "a billion euros more" a fund (the endowment to support local investment) to support the "green" investments of municipalities. "This is also an amount never seen, massive and it must produce a rapid effect in the finances and in the investments of our local authorities", insisted Edouard Philippe.

In addition, he confirmed that the expenses linked to the coronavirus would be isolated in a specific annex in the budgets of the communes. A system, proposed by the Secretary of State Olivier Dussopt, will "smooth over 3 years the cost of the measures taken to deal with this Covid-19", detailed Edouard Philippe.


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  • Communities
  • Covid 19
  • Coronavirus
  • Edouard Philippe
  • Prime Minister
  • Economy