France has approved a special budget bill on 11 December 2024, allowing the State to collect taxes and borrow funds necessary for financing essential public expenditure until the 2025 Finance and Social Security Finance Laws are implemented.
This development follows after the recent no-confidence vote which led to the resignation of the government.
The special bill includes three essential articles to ensure the continuity of national life and the seamless operation of public services. It safeguards the proper functioning of the State, local authorities, and social security organisations, maintaining stability and efficiency across these critical sectors.
The first article of the special bill allows the State to collect existing taxes, ensuring funding for the State, local authorities, public bodies, and revenues for local authorities and the EU. The second and third articles authorise the State and social security organisations to borrow, ensuring funding to maintain national operations until the 2025 finance and social security laws are adopted.
This law does not replace the 2025 budget and its scope is strictly limited. As stated in the announcement, discussions regarding the budget will resume in the first quarter of 2025.
