Former Prime Minister Élisabeth Borne admitted this Friday that she was “warned” at the end of 2023 about the “criticality” of the budget situation, but considered that she had “taken part” in the control of public finances while being interviewed in the Senate in the scope of an information mission on the drift of public accounts.
Matignon’s former tenant was called upon in particular to explain the explosion of the deficit, which will reach 6.1% of GDP in 2024, against the 4.4% initially foreseen in the state budget that she herself had presented in the autumn of 2023.
“Traditionally, what is expected of the government is to take measures to control spending. I think I have largely taken my part,” said the Renaissance MP from Calvados. “It is not for pleasure that we are carrying out three unemployment insurance reforms. It is not for pleasure that we are carrying out a pension reform which we cannot say has been extremely popular,” he added.
An “alarm”, but not an “order of magnitude”
The senators also questioned her about an internal note sent by her Economy Minister Bruno Le Maire on 13 December 2023, in which it was recommended to “widely share the criticality of the budget situation, both within the government but also in the ‘public opinion”. opinion.
Élisabeth Borne confirmed the existence and content of this letter, which she defined as “a notice”. These were “first indications” of a possible decline in state revenue, “but without us being able, at that time, to know what the order of magnitude was,” he said. “There is no alarm signal, neither addressed to the Minister of Economy, nor that the Minister of Economy would have sent me at the time,” said the former prime minister.
The Senate general rapporteur on the budget, Jean-François Husson (LR), expressed his “astonishment” at these responses. “We were told at the time not to worry. And the same people who told us this are writing to you saying Attention, there is a critical situation “, he regretted. “Afterwards we have the feeling that there is not enough awareness to deal with the alert. »
His energy was mobilized on immigration law
“I don’t know what we can do when faced with information like this. We don’t know whether we’re talking about a revenue gap of one billion or 10 billion or even, as we will find out much later, 20 billion,” the former prime minister explained.
He also seemed to place part of the responsibility on Bruno Le Maire. “Generally, when we are faced with a very alarming situation, the Minister (of Economy) comes to meet the Prime Minister,” he noted, but this only happened “on January 4, 2024.” At the time “most of his energies were mobilized” in the “search for a compromise on the immigration law” and not on public finances.
The Senate, which interviewed in particular Bruno Le Maire and Gabriel Attal as part of this fact-finding mission, will present its conclusions in the coming days, before the launch of a commission of inquiry on the same topic in the National Assembly.
What were the key factors that contributed to the significant rise in France’s budget deficit during Élisabeth Borne’s tenure?
Interview between Time.News Editor and Budget Expert Jean-François Husson
Time.News Editor: Good afternoon, and thank you for joining us today, Jean-François Husson, the Senate general rapporteur on the budget. Following the recent revelations about former Prime Minister Élisabeth Borne’s testimony regarding France’s budgetary situation, we have lots to discuss. Let’s start with your thoughts on Borne’s acknowledgment of being “warned” about the critical budget situation. Did she genuinely have control over public finances during her tenure?
Jean-François Husson: Good afternoon! It’s a pleasure to be here. Borne’s statement is quite revealing. While she claims to have taken part in controlling public finances, the reality is that the deficit has ballooned, reaching 6.1% of GDP in 2024, which is significantly above earlier forecasts. This suggests a disregard for the actual fiscal indicators that were emerging even at the end of her tenure.
Time.News Editor: You mentioned the deficit exceeding expectations. She emphasized the government’s difficult decisions, such as reforms in unemployment insurance and pensions. Do you think these measures were adequately communicated to the public and within the government?
Jean-François Husson: Communication is crucial, especially about budget reforms that affect citizens directly. In her testimony, Borne mentioned a letter from Bruno Le Maire which pointed out the critical budget situation. However, if this was only a “notice” and not treated as an urgent warning, it indicates a failure to grasp the seriousness of the moment. The public and lawmakers deserve transparency, especially when difficult reform measures are on the table.
Time.News Editor: Borne referred to the internal note as merely “first indications” without knowing the “order of magnitude.” Do you find this dismissal concerning, especially given France’s economic challenges?
Jean-François Husson: Absolutely. It raises alarm bells. When you’re in a position of leadership, especially concerning public finances, you cannot afford to downplay an internal warning. The significant spike in deficit projections should have urged more immediate actions rather than a lukewarm acknowledgment. Such a stance might signal a lack of urgency which can lead to deeper financial issues in the long run.
Time.News Editor: Reflecting on your experience, what proactive steps should governments take when facing such budgetary challenges?
Jean-François Husson: Proactive measures include clear communication of risks and potential impacts to both the government and the public. Effective budgeting requires agility—adapting quickly to changing circumstances rather than waiting for hard data. Transparency in financial reporting and maintaining a dialogue with experts and constituents is also key. Reform efforts should be rooted in broad understanding and acceptance, otherwise, they’ll face pushback, as we’ve seen with pension reforms.
Time.News Editor: In light of this testimony, what do you think will happen next regarding public sentiment and potential governmental accountability?
Jean-François Husson: Sentiment is likely to be mixed. While the government needs to proceed with necessary reforms, citizens’ trust may wane if they feel the leaders are not adequately addressing the issues at hand. Accountability is essential; the Senate’s inquiry could very well lead to more rigorous oversight and demands for clearer fiscal strategies in the future. We will need to watch closely how the government responds to this internal feedback and external pressures moving forward.
Time.News Editor: Thank you, Jean-François Husson, for sharing your insights with us today. The discussions around public finances are not only crucial but increasingly urgent as we approach 2024. We appreciate your expertise and look forward to seeing how these developments unfold.
Jean-François Husson: Thank you for having me. It’s crucial we remain diligent and proactive in these discussions for the sake of our economy and society.