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 ) :
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The operating section must be voted in balance
■
The investment section must also be voted in balance
expenditures
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=> Borrowings are investment revenues that can only finance investment
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 :
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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 controls (Chambres Régionales des Comptes)
National State insurance (no explicit guarantees) :
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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
Région
îledeFrance
46)
Finance Department - Région Ile-de-France
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