French budget 2025.

The French Parliament has passed the Special Finance Bill for 2025, which permits the continuation of the 2024 budget into 2025 until a new budget for the year is approved.

Executive Summary

On December 18, 2024, the French Parliament approved the Special Finance Bill for 2025. This bill allows the tax provisions in effect in 2024 to remain in place for 2025, pending the approval of a new Finance Bill early in the new year.

Detailed Discussion

The French Parliament did not approve the proposed 2025 Finance Bill, introduced on October 10, 2024. As a result, the French Government resigned on December 5, 2024. In the absence of a new budget, the Special Finance Bill, presented by the outgoing government on December 11, 2024, enables the 2024 budget to be carried over into 2025. It also grants the government the authority to collect taxes and secure borrowing.

The French Parliament's approval of the Special Bill on December 18, 2024, prevents a potential shutdown until a new government is formed and a 2025 budget is voted on, which is expected to happen in the first quarter of 2025.