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Financial outlook and the contribution of local authorities to the recovery of public finances

COUR DES COMPTES

On 27 June last, the Cour des comptes published the first part of its annual report on local public finances. It noted that local and regional authorities had made a significant contribution to the increase in the public deficit in 2024, even though they accounted for only a small proportion of it, and called on them to make a concrete contribution to the recovery of public finances. Today, the Cour des comptes publishes the second part of its annual report on local public finances, in which it analyses the financial outlook and the contribution of local authorities to the recovery of public finances. Unlike in previous years, local authorities will make a significant contribution to the recovery of public finances in 2025. While the balance is expected to deteriorate, it could stabilise or even improve by 2025. Beyond the one-off measures for 2025, we need to organise a predictable, fair and sustainable contribution from local authorities to the recovery of public finances over the long term.

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