Macron strong-arms French parliament into adopting budget

EuroActiv Politico News

PARIS — Emmanuel Macron’s government triggered an emergency political mechanism Wednesday to push through France’s 2023 budget, overruling the parliament’s lower chamber in a contentious standoff in what is the clearest sign yet of the president’s weakened position in his second term.

The government cut short debates and activated article 49.3 in the National Assembly to get the budget approved, shutting down opposition parties’ attempts to pass highly symbolic measures such as a tax on so-called super-dividends — indirectly targeting profits linked to soaring energy prices.

While the move had long been expected, it confirms the failure of Macron’s stated bid to build alliances and cooperate with opposition parties after his party lost an absolute majority in France’s parliamentary elections in June. Macron launched a series of talks with opposition leaders and vowed to seek “new compromises” following the June vote. 

Instead, the blame game ramped up in parliament with Prime Minister Elisabeth Borne accusing the opposition of creating “a blockage” and the opposition arguing the government has failed to engage with opponents.

“It’s the government that has been incapable of building the compromises it says it wants and [it] was the first to start dangling the threat of the 49.3 article,” said Socialist MP Boris Vallaud on Tuesday.

The use of article 49.3 allows the government to pass a bill without a vote in the National Assembly. To vote down the bill, MPs must submit a motion of no confidence that could topple the government if adopted. 

Though opposition lawmakers outnumber those supporting Macron, it’s very unlikely that the far-right National Rally and the far-left alliance Nupes will vote together on a motion of no-confidence. 

The use of the constitutional tool, however, is seen as an instrument of last resort for French governments and raises the stakes for Macron as he faces the risk of industrial action spreading across the country. It also has its limits, as it can only be used once per parliamentary session for non-budget laws.

For several weeks now, French drivers have faced fuel shortages at petrol stations due to a wage negotiations conflict at TotalEnergies. On Tuesday, French trade unions called for a day of strikes and marches to call for wage increases to compensate for high inflation. 

The use of the constitutional maneuver means Macron was able to bin amendments that would have increased taxes, something he vowed not to do during the campaign for his second term. A so-called super-dividends tax put forward by one of Macron’s coalition partners and supported by opposition parties has therefore been struck down.

Finance Minister Bruno Le Maire said the mooted tax was “trickery” and was akin to “a continuous super-taxation.”

“There’s a political and financial coherence and as minister of finance, I am its guardian,” said Le Maire. The government maintains that it will bring France’s level of deficit under the EU threshold of 3 percent of GDP by 2027 despite increased spending due to the effects of the war in Ukraine.

Parliamentary stalemate

The government’s decision to strong-arm the parliament into adopting its version of the budget has angered the opposition and frustrated MPs belonging to Macron’s Renaissance party. 

“It’s an admission of weakness [from the government], and a sign of disdain for the quality of parliamentary debates. All our work has been swept aside in this pretense of democracy,” said Green MP Cyrielle Chatelain after the bill was passed.

“Some of us feel like we are being used as cannon fodder and that we are only there to go through the motions, because we don’t know what the government will keep in the final bill,” said a Renaissance MP on condition of anonymity. 

The use of force also does not bode well for upcoming battles where there is more at stake such as pensions reform. The French president campaigned on a platform to raise the retirement age to 65 from 62 in a bid to make the French pensions system more sustainable. France currently ranks among the nations with the lowest retirement age in Europe.

But pensions reform remains a totemic issue for both the right and the left in France. Both the far left and the far right have vowed to battle hard to block Macron’s reform agenda on pensions.

If the government bypasses parliament to push through a pensions reform, it will put opposition parties in a delicate situation, where they’ll have to decide between putting aside differences and toppling the government, or disappointing their voters.

Anthony Lattier and Elisa Bertholomey contributed to reporting.