Investor Presentaiton
A protective legal framework
Budget balance golden rule ( art. L1612-4 of the Code Général des Collectivités Territoriales - CGCT ; see
appendix slide 46):
◉
The operating section must be voted in balance
◉
The investment section must also be voted in balance
=> Borrowings are investment revenues that can only finance investment expenditures
The gross operating surplus and own investment earnings must at least cover debt amortization
Debt service (interest + capital) is a mandatory expense (art. L4321 du CGCT)
State controls on local authorities :
■ Legal control
■
Accounting operations control : separation between the authorizing payment officer - Région Ile-
de-France - and the accountant ensuring the payment – the National State administration.
-
■ Regional accounts houses (Chambres Régionales des Comptes) controls
☐ National State insurance (no explicit guarantees):
◉
■
State ensures payments of tax proceeds and grants (In accordance with conditions set in the
Finance Law)
Obligation to provide financial compensation for local authorities in the case of transfer of
competencies or creation of new competencies (Art. 72-2 of the Constitution; see appendix slide
46)
*îlede France
Direction des finances - Région Ile-de-France
24View entire presentation