“France needs a budget in time,” faced a financial situation that “is not critical, but still worrying,” said the first president of the Auditors Court on Sunday, Pierre Moscovici, in LCI.
“I remember that the Constitution and organic finance laws provided by the organic finance laws according to which the Parliament must have 70 days of debate, which means that we have until October 15 to have a budget,” he explained, a week before the trust of September 8 during which the government will reproduce its survival.
“Make a commitment”
The situation is “always serious, a little more serious than it was a year ago,” according to him. However, in front of a fragmented National Assembly, it is necessary to “necessarily make a commitment or a majority of non -censorship,” he continued, calling “to tie” the choice of François Bayrou to resort to this vote of trust.
In this context, “this cannot be the budget with which the right dreams dream, it cannot be the budget with which the left dreams, it cannot be the budget with which others dream,” insisted Mr. Moscow.
The challenge of the budget defended by François Bayou is to obtain 44 billion euros in savings as the first step to reduce the public deficit to less than 3% of GDP in 2029, the threshold from which the debt would no longer increase according to the prime minister.
Fight debt
Today, French public debt represents almost 114% of GDP, the third largest in the euro zone behind Greece and Italy.
However, there is no disaster scenario according to Mr. Moscovici, “because we manage our debt, that we belong to the euro zone and that we have taxes that enter. (…) But then, the real problem is the cost of our debt”, which “challenges the markets.”
It is likely that the burden of debt, namely the interest paid every year to creditors, becomes the first position of budgetary expenses, before education and national defense.
“Our debt, unlike others, in particular the Italian or Japanese debt, is mainly owned by foreigners, with 53 or 55%. (…) If they consider that the country is not managed, they add the cost of debt,” he explained.
“The consequences for the French are that we cannot do the rest. If you reimburse 100 billion euros per year (…) the public action is strangled,” he continued.
Source: BFM TV
