Margaux Fodéré // Photo credit: MAEVA DESTOMBES / HANS LUCAS / HANS LUCAS VIA AFP 6:45 a.m., April 9, 2024

The state is always looking to save money. In 2023, the deficit of local public administrations deteriorated sharply and approached 10 billion euros. Many local authorities say they have no room for maneuver to do otherwise.

A few weeks before a possible downgrade of France's rating by the rating agencies, the State is still looking to make savings. After the 10 billion euros announced in February, the government wants to involve local authorities. The High Council for Local Public Finances today brings together several ministers, representatives of local stakeholders and experts to find avenues for savings.

However, local authorities are already asphyxiated. Last year, the accounts of local public administrations plunged into the red: their deficit reached almost 10 billion euros according to INSEE.

“We have no room for maneuver”

And for François Durovray, the president of Essonne, it is the consequence, not of bad management, but of a scissor effect which suffocates the departments: "In Essonne, in 2024, the additional social expenditure imposed by the State is over 40 million euros. And at the same time, our revenue has collapsed since this revenue is based mainly on transfer taxes, notary fees. For a department like Essonne, "We have lost, for the year 2023 alone, 100 million euros. I don't know an elected official who doesn't count the expenses incurred to the nearest euro. We have no room for maneuver." 

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The situation is just as tense in the municipalities, also weighed down by the slowdown in the real estate market last year and by inflation. But savings could be found by acting on the payroll of local authorities, estimates Olivier Redoulès, director of studies at Rexecode: “Over the last 25 years, the number of local civil service agents has increased by 58%. "There is significant potential for savings, but the State must give them the means to do so. This undoubtedly means much more management autonomy for local authorities." 

Bercy assures that nothing has been decided before the meeting of the High Council of Local Public Finances scheduled for today. Before recalling that the idea is to resolve the problem of public finances “together”.