The absence, for the moment, of a 2025 budget, a consequence of the censure of the Barnier government on December 4, has advantages and disadvantages for the French.
On January 1, there will only be a “special law” authorizing the government to raise taxes and spend credits on the basis of the 2024 budget, without the possibility of new measures.
200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000The absence of an additional increase in the electricity tax is part of the good news. The electricity tariff shield will end on February 1st but without the planned tax increase: a boon for households who will benefit from a 14% reduction in their bill, due to the lack of adoption of the budget, but also synonymous with some bad news.
Another piece of good news is the absence of deindexation of pensions, all increased by 2.2% on January 1st. Nor will there be, for the time being, any delisting of certain medications, or the elimination of 4,000 teaching positions.
On the other hand, without a new budget, 380,000 new households risk falling into income tax, and millions of paying more due to the lack of indexation of the scale to inflation. Favorable commitments to farmers, the textile sector, or the increase in credits for sovereign ministries are suspended for the moment.
Similarly, aid to overseas territories, VAT reduction in Martinique and Guadeloupe, or a loan of one billion euros to New Caledonia, are blocked in the pipeline.
Another inconvenience for millions of employees: restaurant vouchers are theoretically no longer usable on January 1 for food shopping.
It remains to be seen what will or will not be included in the budget that François Bayrou wants to be voted on in February, and whether the government will be censured again, in which case the special law would continue to apply.
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