Deficit: "It is difficult to make major savings efforts without affecting local communities"according to a former magistrate of the Court of Auditors
“It is difficult to make major savings efforts without affecting local communities”, estimated François Ecalle, former magistrate of the Court of Auditors and president of Fipeco, an information association on public finances. He was interviewed on Tuesday April 9 on franceinfo while the High Council of Local Public Finances met in Bercy this Tuesday, to discuss possible savings in the 2025 budgets of local authorities.
“Apparently, not much came of it”, analyzes François Ecalle. France’s public deficit reached 5.5% of GDP in 2023 according to INSEE, and the government wants local authorities to make savings. “We still have a public debt problem that we must stabilize. If we do not want to increase taxes, we must play on spending,” he judges. On their own, local authorities represent “20% of public spending”explains the former magistrate.
According to François Ecalle, the State receives little support from local elected officials: “It’s a dialogue of the deaf.” “The State asks local authorities to make efforts, and they respond that they are well managed, in balance. The State replies that it pays them 50 billion euros in subsidies each year. The communities respond that ‘it also imposes lots of expenses and standards on them’, he adds. More broadly, to reduce the deficit, the executive announced 10 billion euros in savings this year, and “at least 20 billion” next year. “Politically and in the current French political and social context it will be very very difficult”analyzes François Ecalle.
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