The announcement of the dissolution of the National Assembly on June 9th has led to a period of interim management of government affairs in France. Many decisions related to budget priorities and political directions are now on hold indefinitely. This uncertainty is affecting various sectors, such as housing and healthcare, and it remains unclear how long this period of limbo will last.
The housing crisis in France continues to worsen, with reforms aimed at improving the real estate market and access to rental properties coming to a halt. According to a recent report by French notaries, the number of sales of existing homes is expected to drop below 750,000 by the end of summer, compared to over 1.2 million transactions in the fall of 2021. The new housing market has also seen a 36% decrease in activity over the past year, leading to financial difficulties for companies in the sector.
The government under Prime Minister Attal had initiated a bill to increase the supply of affordable housing by promoting intermediate housing and accelerating construction. However, the debate on this bill in the Senate was interrupted by the dissolution of the National Assembly. Similarly, a bipartisan proposal to regulate Airbnb-type short-term rentals, passed by both chambers, was not able to be examined by a joint parliamentary committee before the dissolution.
The healthcare system in France is facing significant challenges, with emergency room closures and lengthy wait times becoming more common. Issues such as budget allocation to hospitals have become pressing, with the French Hospital Federation highlighting a financial deficit of 1.7 billion euros. The upcoming Social Security funding bill, which sets the national spending target for healthcare, is also in a state of uncertainty, further complicating the situation for hospitals and healthcare providers.
Additionally, the implementation of a law passed in December 2023 aimed at increasing the participation of private clinics in after-hours care is still pending. Other unresolved issues include the restructuring of the nursing profession and a promised government plan to address violence against healthcare workers. The lack of progress on these fronts is raising concerns about the future of healthcare in France and the well-being of medical professionals.
Overall, the dissolution of the National Assembly has created a state of flux in various sectors in France, including housing and healthcare. With key decisions on hold and uncertainty lingering, the future direction of policies and reforms remains unclear. The impact of this political transition on the everyday lives of French citizens, as well as the long-term implications for key social services, is yet to be fully understood. The need for a new government to address these challenges and provide stability and direction for the country is becoming increasingly urgent.
