How to finance new expenses? A sensitive question for the future government, as growth slows, inflation accelerates and interest rates rise. Eco guest of franceinfo on Wednesday May 11, Pierre Moscovici, First President of the Court of Auditors, considers that “not everything can be a priority“.
He sees it coming”a mountain of investments“, with some “necessities“, for ecology, defense or even innovation. But the former Minister of the Economy underlines the high level of the debt, at around 2800 billion euros: “Public finances must be able to remain sustainable, which means that there are choices to be made“, in the next “priorities” of the government.
“There are policies that need to be reformatted. We can do better without doing more.”
Pierre Moscovici, First President of the Court of Auditorson franceinfo
Does rising interest rates threaten the financing of French debt? “Our debt is sustainable” and “financeable under good conditions“, answers Pierre Moscovici, but “the interest charge can increase sharply“: “A larger debt reduces our room for maneuver“.
In this context, do European budgetary rules still make sense? “I believe the 3% [du PIB, comme plafond pour le déficit] have relevance“, keep it First President of the Court of Auditors, for whom France’s objective (a 3% deficit in 2027) remains “not only realistic, but necessary“.
“Debt is something else he continues. We are not going to reduce the debt to 60% of GDP. But we must invert the debt curve and do it as quickly as possible (…) We must have a debt dynamic that is comparable to that of our neighbours. If the French debt continues to increase while those of Italy, Spain, Portugal, Belgium decreased, there could be a look at France. These are points of vigilance“.