Deficit, debt: Bruno Le Maire counters
Posted Jul 29, 2022 3:59pm
Many numbers were on the menu of the last Council of Ministers this Friday before the summer break. In fact, Bruno Le Maire presented France’s “stability program”, that document which outlines the evolution of public finances for the next five years and which has to be sent to the European Commission in the coming weeks. He then spoke about the budgetary strategy for the period 2022-2027.
“Our course is credible and responsible,” stressed the minister in response to the damning opinion of the High Council of Public Finances (HCFP), a body affiliated with the Court of Auditors. Indeed, the latter has accused the government of the lack of “ambition” regarding the deficit, pointing out that the target of returning below 3% (of GDP) will wait until 2027, while several comparable European countries will do so from 2025 in Consider “We have shown that we can meet our commitments”, pleaded Bruno Le Maire with supporting examples.
“Yes, we believe in the possibility of improving French growth through reforms,” continued the minister, who was proud of the resilience of growth in the second quarter: after falling 0.2%, it recovered 0 .5%.
“Growth will allow us to restore our accounts,” the minister stressed, while tax officials said the macroeconomic assumptions were overly optimistic, with GDP expected to increase by 1.4% next year and 1.8% by 2027 became. “Let’s show voluntariness, not pessimism, let’s show determination, not resignation!” Bruno Le Maire started.
If growth is an essential lever to return to the nails of the European Stability Pact, structural reforms are another. The Bercy tenant reiterated that “pension reform will come into effect in the summer of 2023.” “We are determined to change the French economic model,” he said.
Last lever to maintain the “framework” set for the period 2022-2027: control of expenditure. The growth target of 0.6% per year, based on the volume, “all administrations together”, was reaffirmed. Bercy had explained a week earlier that this would be done by reducing the volume of spending by the state (-3% for ministries in 2023) and local authorities.
“Every euro counts,” Bruno Le Maire repeated for two weeks in front of parliamentarians who are examining the legislative package of 20 billion euros on purchasing power. However, the government’s serious budget does not convince everyone.
“France has returned to the GDP level of 2019 but has maintained a budget deficit at the level of the crisis: 178 billion euros compared to 93 billion euros in 2019. With every new revenue comes new expenditure: it is impossible to calculate the deficit like this to reduce,” criticized Senator LR Jérôme Bascher on Twitter.