French Government to Ease Budget Cuts on Departments After Protests
Prime Minister Michel Barnier announces significant reductions in financial demands on departments following threats to suspend welfare payments.
- The original 2025 budget proposed a 5 billion euro reduction for local governments, with departments bearing 44% of the cuts.
- Departments, particularly those led by right and center parties, threatened to halt RSA payments and care for unaccompanied minors if demands weren't reduced.
- Prime Minister Barnier pledged to significantly lower the financial effort required from departments, acknowledging their unique economic challenges.
- Key measures include a temporary increase in notary fees, adjustments to tax compensation, and extended timelines for pension contributions.
- The government aims to introduce these changes during the Senate's budget discussions starting November 25.