2023-06-19 15:10:58
No more “whatever it takes”. The government indicated on Monday that it had identified “at least 10 billion euros in savings” which are only a “step” and will contribute by 2027 to the recovery of France’s degraded accounts. The executive aims above all to cut into health expenditure or tax advantages for fuels.
These savings proposals, which will be the subject of consultations, will also partly feed into the draft budget for 2024 which will be presented in September. The latter will require at least 12 billion euros in savings for this year alone, said a source at Bercy.
“Who would understand that we continue to spend so much? »
The executive intends to reaffirm its budgetary seriousness and turn the page on the expensive support measures “whatever it costs” in the face of the health and energy crises. “Now that we are back to normal, who would understand that we continue to spend so much? “, declared the Minister of the Economy Bruno Le Maire, opening in Bercy the Assizes of public finances.
In order to reduce the debt and the public deficit until 2027, “we have identified, in particular with our first review of public expenditure, at least 10 billion euros in savings”, underlined the minister. These savings will have to be found on health, by fighting against the explosion of sick leave and “the excesses” of drug expenditure, he detailed.
End of fuel tax benefits by 2030
Housing aid with the abolition of the Pinel device and the overhaul of the zero-rate loan (PTZ), for a saving of two billion euros are also in the sights of the government. Another target, the tax advantages on fuels enjoyed by certain professions such as road hauliers or farmers, while France is embarking on the shift to energy transition. They will be phased out by 2030, with support to enable these professions to make this shift.
Bruno Le Maire, however, rejected “austerity” and said he did not want an “axe policy, which would kill our growth (…) by cutting expenses blindly”. The objective is to reduce France’s heavy debt to 108.3% of GDP (Gross Domestic Product) in 2027 (compared to 111.6% at the end of 2022), which places it on the side of the poor European students.
And to bring the public deficit below the European target of 3% (4.7% at the end of 2022). Everything will be included in a programming law scheduled for September. To achieve this, the government is also counting on the end of the energy shield, the gains from reforms such as pensions or unemployment insurance, and full employment.
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