Urban policy: 350 million euros released for neighborhoods

The French government and the Caisse des Dépôts (French Deposits and Consignments Fund) will allocate €350 million by 2027 to working-class neighborhoods, particularly to support local authorities, associations, and social and solidarity economy businesses, Juliette Méadel, Minister Delegate for Urban Affairs, announced to AFP.

Provided for in a three-year agreement, these funds "represent more than half of my ministry's budget" and will "all be injected into urban policy," the minister declared.

This envelope follows a previous three-year agreement of 225 million euros (2021-2023) not yet renewed with the Caisse des Dépôts, one of whose missions is the financing of urban policy through Livret A savings.

Of the 350 million euros announced Wednesday, 100 million will subsidize technical expertise for local authorities and associations, as part of the new city contracts signed in 2024.

The remaining sums will be released either in the form of loans to communities or as capital investments, for example in social and solidarity economy companies or in real estate projects with an economic vocation.

"These funds will flow directly into the neighborhoods to support the policy I will outline at the next Interministerial Cities Committee (CIV), with priorities such as childhood and economic development," added Juliette Méadel. The minister announced Tuesday evening on X that the CIV would be postponed for the second time, initially scheduled for April 17 and then May 15 in Montpellier, due to the "international calendar."

"We will have to see how this announcement of new funding translates into concrete results on the ground," commented Gilles Leproust, president of the Ville et Banlieue association, regretting the CIV's new postponement.

"There is a form of contempt on the part of the Prime Minister towards the six million inhabitants of the districts and we do not feel a political will to take strong action, especially since we have been told of a freeze of 15 million euros," he added, referring to the 15 million euros of payment credits cancelled by decree on April 25 as part of the 2025 budget.

"In the neighborhoods, the social situation of residents is deteriorating, and this new postponement will add to the despair and social crisis that exists in our territories," he added.

The previous interministerial committee of the towns of Chanteloup-les-Vignes (Yvelines), organized in October 2023, had been postponed several times and its results had disappointed the elected officials.