Budget 2023: text and use 49.3 approved by the Constitutional Council

The Constitutional Council approved on Thursday the foundations of the government finance law for 2023 and, in particular, the methods of using Article 49.3 of the constitution, which has been criticized by some MPs.

Bersi welcomed in a press release that “The Constitutional Council confirms the entry into force of the main provisions of the budget for 2023”, including “the abolition of the company value added contribution (CVAE) in two years, (…) the extension and strengthening of protection against rising energy prices for households, communities, and businesses (and) the introduction of a Personal Training Account (CPF) co-payment.”

Article 49.3 allows the government to adopt a legislative text without a vote, taking responsibility. Prime Minister Elizabeth Bourne used this procedure ten times for the 2023 Finance Act, which can be used indefinitely in budgetary matters.

The right to make changes is respected

The requesting MPs deemed it unconstitutional to hold the government “responsible to the National Assembly for voting on the first and then on the second part” of the draft budget, arguing that “the constitution requires the exercise of this prerogative to vote on the entire draft,” recalls the Council in its decision. The High Court found them to be false, holding “that no constitutional requirement has been disregarded in the procedure provided for in the third paragraph of Article 49 of the Constitution.”

The Constitutional Council also ruled that the parliamentarians’ right to amend had been respected, rejecting an appeal from deputies who felt that the amendments were “not considered” and “placed on the agenda”.

Finally, the High Court found the 2023 budget to be sincere, rejecting complaints from MPs who called into question the government’s economic forecasts based on the reservations expressed by the High Council of Public Finance in its Sept. 21 opinion. The Constitutional Council, in particular, ruled that the 1% growth forecast for gross domestic product (GDP) in 2023, on which the budget is based, is not tainted by “the intention to distort the main provisions of the balance of the budget law.”

Seven articles rejected

However, the High Court excluded seven articles from the text on the grounds that their purpose was not budgetary. Rejected article 82, which wanted to introduce a new article in the customs code, providing that the judiciary communicates to the customs administration any information it collects”, as well as article 98, which authorized the government to change by its decree “the bases applicable to the examination of goods, transport means and persons” by the same customs. Article 143 on the establishment of a transport finance conference in the Île-de-France is also condemned.