The government presents its budget bill to the Council of Ministers on Wednesday under the cautious eye of its European neighbors and rating agencies.
France is somewhat in the sights of our European neighbors, notably the Germans, who find that we are too spendthrift, too lax, and added to this is the pressure from rating agencies. Last April, the Fitch agency downgraded France’s rating and the government’s fear is to lose further points in the next ratings, from Fitch but also from the Moody’s agency, which will fall this fall.
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This is why the executive repeats its intention to straighten out the accounts, to get out of this situation whatever it costs. In his bill, presented on Wednesday September 27 to the Council of Ministers, he plans to reduce the public deficit from 4.9% of gross domestic product (GDP) to 4.4% next year.
Debt interest equivalent to the National Education budget
The bill also plans to reduce the debtt for good reason, it is colossal: more than 3,000 billion euros. Without having the money to pay our expenses, we live on credit. LThe government wants to reduce the debt by 4 points, to bring it down to 108% of GDP, at the end of the five-year term.
But with the rise in interest rates, the burden of this debt, that is to say the weight of interest explodes,The reimbursement of this interest alone will soon exceed the annual budget of National Education, the 1st state budget…
To save money, the government will stop most energy shields against inflation, remove tax loopholes, review medical deductibles. And PTo bring money into the coffers, he also counts on the good performance of employment, Bruno the Mayor repeats that the French economy is resilient. While Germany is in recession, and activity is slowing almost everywhere, the Minister of the Economy forecasts 1.4% growth next year.
Forecasts that remain optimistic for Bruno the Mayor
The whole debate is whether these predictions are realistic. PFor the President of the Court of Auditors, Pierre Moscovici, this budget lacks credibility, because it is based on forecasts of employment, growth, but also business investments that are far too optimistic.
As for the latest spending announcements, if the fuel allowance of 100 euros, announced Sunday evening, represents around 500 million euros, the indexation of pensions at 5.2% will be worth an additional 14 billion… Enough to liven up the parliamentary debate which will open.