57

The financial crisis has had major repercussions for local and regional authorities in France, which provide 70 percent of public investment. It primarily had an impact on their resources, which have been stagnant at best and in some cases, have decreased; e.g., the Company Value Added Contribution (CVAE – Cotisation sur la Valeur Ajoutée des Entreprises) and certain funds allocated by the government. Moreover, as is the case with all economic stakeholders, they must deal with the credit crisis and are therefore struggling to finance their investments. Therefore, unless a quick recovery solution is found, local and regional authorities will have no other choice than to postpone or even cancel some of their investments. Alternatively, they could use their fiscal leverage and increase the taxes over which they still exercise control.