The Minister of the Economy explained on Monday that today France borrows “at more than 2%” to finance public spending, when it did so recently at negative or very low rates.
France has reached itshigh alerton public finances, said Monday the Minister of the Economy Bruno Le Maire, at a time when the executive is seeking a compromise with the opposition for its bill on purchasing power. “Not everything is possible, simply because we have reached the watertight level on public finances“, affirmed Bruno Le Maire, adding that “financing conditions have changed» and that today France is borrowing «more than 2%to finance public spending, when it did so recently at negative or very low rates.
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A public debt that exceeds 2900 billion euros
Asked about the proposal made by several opposition parties, such as Les Républicains or the National Rally, for a reduction in fuel tax, Bruno Le Maire assured that the government would “discuss“with these formations but that”the spirit of compromise must be accompanied by a spirit of decision». «Additional expenditure of the order of 20 or 25 billion euros on fuel as proposed by some political formations, they are too expensive, or else we will have to give up other things“, he estimated.
According to INSEE, French public debt exceeded 2,900 billion euros at the end of the third quarter, or 114.5% of GDP, also due to sluggish economic growth. It is not this amount whichconcerned” Bruno Le Maire, but the fact that “financing conditions have changedfor France, with the rise in interest rates which has begun and will continue, as the European Central Bank seeks to reduce inflation. “Part of the debt burden is indexed to inflation“, recalled in particular the Minister, which represents “several billion eurosto spend to repay this charge each year.
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«My task as Minister of Finance is to return to balanced public finances by 2027». «Politics are choices (…) It is imperative to reduce public debt” most “we must at the same time protect our compatriots who are the most fragile, but protect them responsibly». «We will have to decide within a framework that is constrained, which is that of our public finances“, he insisted, also confirming the cap at 3.5% of the increase in rents, as well as a revaluation of 3.5% of the APL.