2023-04-18 17:07:55
The cost of public borrowings thus increased by 15.1 billion euros in one year, to 53.2 billion in 2022. AND CEDENO / REUTERS
The government had until then expected debt to reach 110.9% of gross domestic product (GDP) in 2027, more or less the level of 2022.
Bruno Le Maire, the Minister of Economy and Finance, announced on Tuesday that he intended to accelerate the pace of France’s debt reduction during the presentation, scheduled for Thursday, of the trajectory of public finances until 2027, which will detail growth forecasts and debt trajectory over this horizon.
“Financial conditions have changed dramatically”said Bruno Le Maire on BFMTV-RMC, in reference to the sharp rise in interest rates at which France borrows on the markets.
Debt has widened considerably since the health crisis and the “whatever the cost”, increasing the debt burden all the more as interest rates have suddenly rebounded around 3% for French bonds. to 10 years, after years of very low or even negative rates. The burden of public borrowing thus increased by 15.1 billion euros in one year, to 53.2 billion in 2022, INSEE had indicated at the end of March.
Read alsoClimate, debt: France hopes for progress at the end of June in Paris
“An additional interest rate point on the French debt is, by 2027, 15 billion euros of additional charge on the French public debt”recalled Bruno Le Maire.
Until now, the government was counting on a debt of 110.9% of gross domestic product (GDP) in 2027, i.e. around the level of 2022 (111.6% according to INSEE), for a public deficit which would drop below the European limit of 3% of GDP.
“I have no desire to throw money away because it’s taxpayers’ money”assured the number two of the government. “Snapping money for the load just because interest rates have gone up, I find that’s so much money that could have gone to hospitals, to colleges, to nurseries, to universities, towards green investments, towards the decarbonisation of our economy”, he insisted.
#Bercy #accelerate #debt #reduction