November 17, 2024
France slashes development aid by 18% to curb deficit – Euractiv #FrenchFinance

France slashes development aid by 18% to curb deficit – Euractiv #FrenchFinance

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The French draft budget, prepared over the summer by the resigning government, proposes an 18% cut to official development assistance (ODA) to tackle a soaring public deficit, raising concerns among NGOs and political leaders who warn of the impacts on international aid programmes and the country’s global commitments.

Last February, the French government announced savings of €800 million on official development assistance for 2024, and further cuts are planned in the draft of the 2025 budget. The news has sparked alarm among NGOs and international aid advocates, who warn of severe consequences of such cuts.

“It’s terrible because without this money, some local NGOs will no longer be subsidised thanks to ODA, medicines will not be purchased, the construction of clinics will be cancelled, and humanitarian aid will not be sent,” says Gautier Centlivre, advocacy coordinator for Global Health Actionan organisation that promotes access to healthcare for disadvantaged individuals.

The proposed cuts came to light in early September after MPs Éric Coquerel (La France Insoumise, The Left), chairman of the National Assembly’s Finance Committee, and Charles de Courson (Groupe Libertés, Indépendants, Outre-mer et Territoires), general rapporteur for the same committee, demanded the publication of the ‘ceiling letters’ outlining budget allocations for each ministry.

Former Prime Minister Gabriel Attal issued these letters on 20 August, revealing the proposed cuts to ODA as part of broader budget reductions.

France’s public deficit is set to reach 5.6% of GDP in 2024, and major budget cuts are expected next year, according to the latest estimates.

“The scale of the cuts is disproportionate,” says left-wing Senator Raphaël Daubet, co-rapporteur of a study published in July on food aid provided by France as part of ODA.

Daubet also warns that the cuts are “sending the wrong signal to our partners and international organisations,” as “ODA is crucial, especially in times of crisis when mutual aid is essential,” emphasising that “all public policies must play their part in efforts” to limit the growing public deficit.”

NGOs share the same sentiment. “We are dismayed because this budget item funds ambitious international projects and supports poor and marginalised populations,” points out Gautier Centlivre who has also been the leader of a working committee on ODA for Global Health Action for over 10 years.

Centlivre describes the cuts as “a complete U-turn in the policies organising France’s international solidarity,” adding that “in 2017, Emmanuel Macron had made the ODA one of his priorities. On the evening of his election, he explained that it was an ethical and moral way of illustrating France’s international presence.”

“The government has once again decided to make savings on the backs of the poorest people on this planet. When will international solidarity stop being Bercy’s budget-cutting reserve?” said Alan Anic, head of advocacy of the International Solidarity Campaign at Oxfam France, in a press release on 3 September.

In 2023, France’s ODA represented just 0.5% of its gross national income (GNI), amounting to €14.3 billion – far short of the 0.7% target to which most OECD countries have committed since 1970 and reaffirmed in 2015.

The Council of the European Union reported that in 2023, member states’ ODA totalled €95.9 billion, up from €93.3 billion in 2022 and €71.6 billion in 2021. European capitals remain the world’s biggest contributors to development aid according to the Council’s report.

Budget cuts expected

While the government has not specified the funding cuts under consideration, Senator Raphaël Daubet believes they will likely affect programmes managed by the Ministry of Finance and the Ministry of Foreign Affairs.

“The envelopes most likely to be cut are project aid from the French Development Agency (AFD), voluntary contributions to international organisations and humanitarian aid credits,” he explains.

The appointment of Michel Barnier as prime minister has intensified concerns. “The right-wing tendency of the central bloc in the National Assembly is a worrying sign, but we want to believe that the issue of international solidarity can be transparent, “ says Gautier Centlivre.

In theory, the draft finance bill (PLF) must be presented to the National Assembly by 1 October at the latest. This tight deadline could limit the room for manoeuvre of the government that will be appointed in the next few days.

“We can hope that the new government and Parliament will review the funding cuts,” says Daubet. “However, I’m pessimistic: the Senate majority wants to see cost-cutting measures, and finding a majority in the Assembly in favour of official development assistance is likely to prove mission impossible.”

[Edited by Martina Monti]

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