Laurent Saint-Martin, the Minister in charge of budget and public accounts, stated that there will be no across-the-board cuts to public sector employees in all ministries in the upcoming 2025 budget. He reiterated the goal of achieving €60 billion in savings for this year, with two-thirds of the efforts coming from budget cuts and an additional temporary contribution being requested from those who can afford it, such as an increase in taxes for large corporations and the wealthiest households. This measure is in line with Prime Minister Michel Barnier’s stance.
Regarding reducing the workforce in the public sector, specifically by not replacing certain positions after retirement, Saint-Martin supported this idea as a necessary step to slow down the increase in public spending. However, he emphasized that any cuts would not be generalized across all ministries equally, hinting that certain sectors like education and law enforcement (armed forces, police, gendarmerie) may be exempt from these measures. The specific ministries affected have not been disclosed yet.
The Minister also defended the government’s proposal to cut back on the tax breaks for businesses introduced during the Covid-19 crisis and the “inflation crisis,” as well as delaying the pension revaluation from January 1st to July 1st and ending the price shield on electricity tariffs due to falling prices. These decisions will be subject to debate and parliamentary approval. Saint-Martin emphasized the need for an open discussion on where public funds can be most effectively utilized in the upcoming budget.
He stressed the importance of transparency and open dialogue in shaping the budget for 2025, highlighting the need to prioritize the most essential public services and investments. The government is facing tough decisions to achieve the required savings while ensuring the sustainability of public finances. Saint-Martin urged for a collective effort in determining the best allocation of public funds and emphasized the necessity of making difficult choices to maintain fiscal responsibility.
Overall, Saint-Martin’s statements indicate a mix of budget cuts, temporary contributions from certain sectors, and targeted reductions in tax breaks to achieve the €60 billion savings goal for 2025. The government is aiming for a balanced approach to fiscal consolidation, focusing on areas where reductions are deemed necessary while safeguarding essential services and public investments. The upcoming budget will involve tough decisions and require cooperation from various stakeholders to ensure economic stability and sustainable public finances in the long term.
