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FRANCE: Next Steps For Budget As No Confidence Vote In Gov't Looms

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CORRECTION: Dates of censure motion and possible gov't shutdown. If the gov't falls in a 4 Dec censure motion (no-confidence vote) the adoption of all parts of the budget - the Social Security Finance Bill (PLFSS), the draft finance law (PLF), and the end-of-management finance bill (PLFFG) - would come to a halt. In order to have a budget in place by year-end Article 47 of the constitution might be invoked. This provides for a gov't to enact a budget by ordinance without a vote if it is not passed within 70 days. However, it is unclear if this would be legally possible given that when a gov't falls, all of its bills also fall. 

  • If a new gov't cannot be formed immediately (given it took months to get the Barnier gov't into office this is a reasonable prospect) the caretaker gov't can submit a 'special law' under Art. 45 of Organic Law on Laws of Finance before 19 Dec that would allow the gov't to continue collecting taxes and continuing expenditure at current levels to keep the state running into the next year until a budget is approved.
  • If this law is rejected, the options become even more stark. Under Article 16 of the Constitution if "the proper functioning of the constitutional public authorities is interrupted," the president may assume emergency powers that allow him to bypass the legislature. This would be extreme given that it would essentially represent a suspension of French democracy. Without such action, though, a US-style gov't shutdown would loom on 1 Jan.
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CORRECTION: Dates of censure motion and possible gov't shutdown. If the gov't falls in a 4 Dec censure motion (no-confidence vote) the adoption of all parts of the budget - the Social Security Finance Bill (PLFSS), the draft finance law (PLF), and the end-of-management finance bill (PLFFG) - would come to a halt. In order to have a budget in place by year-end Article 47 of the constitution might be invoked. This provides for a gov't to enact a budget by ordinance without a vote if it is not passed within 70 days. However, it is unclear if this would be legally possible given that when a gov't falls, all of its bills also fall. 

  • If a new gov't cannot be formed immediately (given it took months to get the Barnier gov't into office this is a reasonable prospect) the caretaker gov't can submit a 'special law' under Art. 45 of Organic Law on Laws of Finance before 19 Dec that would allow the gov't to continue collecting taxes and continuing expenditure at current levels to keep the state running into the next year until a budget is approved.
  • If this law is rejected, the options become even more stark. Under Article 16 of the Constitution if "the proper functioning of the constitutional public authorities is interrupted," the president may assume emergency powers that allow him to bypass the legislature. This would be extreme given that it would essentially represent a suspension of French democracy. Without such action, though, a US-style gov't shutdown would loom on 1 Jan.