Straight into the wall of debt

2023-05-05 11:23:00

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EDITORIAL. The warning shot is harsh but amply deserved: by downgrading France’s solvency rating, the Fitch agency pointed the finger at our drift.

By Nicolas Baverez

Emmanuel Macron during a trip to Alsace on April 19.
© LUDOVIC MARIN / POOL / AFP

Published on 05/05/2023 at 11:23 am

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Lhe Fitch agency downgraded France’s financial rating to AA- on April 28, highlighting the high level of public debt compared to the major developed countries, but above all the weakness of growth as well as the rise in social tensions and the political deadlock that stand in the way of reform. This sanction, the logical culmination of the crazy strategy of “whatever the cost”, will have serious consequences on the cost of the French debt and on its sustainability.

The French model of decline and impoverishment through debt is now reaching its limits. Public debt rose from 20% of GDP in 1980 to 58% in 2000, 85% in 2010, and 111.6% in 2022. It exceeds 3,000 billion euros, or 44,200 euros per French person, while the annual salary capped at…