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The drop in budgets may have “dramatic consequences” on the social and solidarity economic system sector, its stakeholders denounce

Actors within the social and solidarity economic system have been alarmed on Wednesday by the drop in budgets deliberate for his or her sector by the federal government, estimating the variety of jobs destroyed at 186,000. It is ” a disaster which will affect the daily lives of the French, from nurseries to nursing homes”, according to them. “It is the first kilometer of the general interest that is affected: support for older people, integration, culture, crèches”denounced Benoît Hamon, president of the ESS, an association comprising the actors and networks of the social and solidarity economy, i.e. some 220,000 organizations.

During a press conference bringing together in particular the Union of Employers of the Social and Solidarity Economy (UDES), the Mutualité française and the Associative Movement (700,000 associations), the participants estimated that the reduction in credits provided for in the 2025 draft budget will lead to the destruction of 186,000 jobs out of some 2.6 million in the sector. The draft state budget discussed Wednesday in committee at the Assembly provides for 60 billion euros in savings, including 40 billion in spending reductions and 20 billion in tax increases.

A drop which will have a “cumulative impact” of 8.26 billion euros, according to the ESS, with the consequences “dramatic”alerts UDES. “This will have direct repercussions on employment and local services. Already underfunded, the sector will have to absorb further drastic reductions which could affect everyday workers and weaken the structures serving the most vulnerable”deplored the UDES in a press release.

“The question of defending and preserving our non-profit models arises more than ever”also denounced Claire Thoury, president of the associative movement. “It’s a short-term policy. When the State makes savings on integration, on access to employment, this will have a cost tomorrow, in terms of increased poverty and social violence, which will be much greater”further warned Mr. Hamon, socialist candidate for the 2017 presidential election.

https://www.lemonde.fr/politique/live/2024/10/16/en-direct-budget-2025-les-deputes-ont-entame-l-examen-du-budget-en-commission-des-finances-la-taxe-sur-les-hauts-revenus-etendue_6351365_823448.html