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Cour des comptes Says Local Deficit Narrowed but Remains High, Urges Continued Contribution

The court warns volatile property-transaction receipts and geopolitical shocks could undo 2025 gains and calls for ongoing local participation in national deficit reduction.

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«Une contribution des collectivités au redressement des finances publiques se justifie par leur part dans l’ensemble des dépenses publiques», argumente la Cour des comptes.

Overview

  • The Cour des comptes' report published on Thursday shows the combined deficit of regions, departments and communes fell to €9.3 billion in 2025 from about €12 billion in 2024.
  • Inspectors attribute the 2025 improvement mainly to a roughly €2.6 billion rebound in property-transaction taxes (DMTO) and to restrained operating spending across many local authorities.
  • The court says local governments should keep contributing to national consolidation, recording a net contribution of €4.3 billion in 2025 and estimating about €3.5 billion for 2026 under current rules.
  • Financial health is uneven: communes and intercommunalities are generally stronger thanks to property tax bases, while many departments and regions face volatile DMTO or VAT receipts and rising social-assistance costs.
  • The report flags clear downside risks that could reverse progress, notes Bercy’s warning of a possible €2 billion overshoot of the 2026 trajectory, and criticises the current redistribution mechanism as uneven in its burden sharing.