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 + own investment earnings must at least cover debt amortization Debt service (interest + capital) is a mandatory expense (art. L4321 from the CGCT) State controls on local authorities : Legal control (prefect, administrative court) ■ Accounting operations control : separation between the authorizing payment officer - Region 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): ■ 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) Région îledeFrance Finance Department - Region Ile-de-France ☐ 24 24

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