2023-06-19 12:21:29
The Minister of Economy and Finance, Bruno Le Maire, at the opening of the “Assises des finances publiques”, in Bercy, June 19, 2023. JULIEN DE ROSA / AFP
“At least ten billion euros. » This is what the government intends to save to straighten out public accounts by 2027, Bruno Le Maire announced Monday, June 19 at the opening of the “public finance assizes”, in Bercy. These savings will have to be made in the fields of health, housing and employment aid, as well as with the gradual end of tax advantages for fossil fuels, specified the Minister of Economy and Finance.
After having escaped the caudine forks of the agency S&P Global, which maintained the French solvency rating, the executive intends to reaffirm its budgetary seriousness and turn the page on the expensive support measures of “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 while these two major crises (…) are behind us? »declared the Minister of the Economy Bruno Le Maire. “Our collective duty now is to protect our nation from debt. »
Organized on his initiative and that of his colleague in charge of public accounts, Gabriel Attal, in the presence of Prime Minister Elisabeth Borne, who is due to speak at 12:30 p.m., these “assizes” follow the annual reviews of the expenditure of the State, communities and social administrations, launched a few months ago. However, they are shunned by the three main associations of local elected officials, who disagree with the analysis of the situation.
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In order to reduce the debt and the public deficit until 2027, according to a more ambitious trajectory presented in April, “we have identified, in particular with our first review of public expenditure, at least 10 billion euros in savings”underlined Bruno Le Maire.
These savings will have to be made in particular in the field of health, by combating the explosion of sick leave and ” drifts “ expenditure on drugs, in housing, with the abolition of the Pinel device and the overhaul of the zero-rate loan, which ultimately represents two billion euros, as well as by reducing employment support.
“Companies have never had such difficulty recruiting. However, we continue to massively support employment. When the unemployment rate goes down, the cost of employment aid must go down”estimated the minister, referring to learning and the personal training account.
“Neither austerity nor angelism”
Another target, the tax advantages on fuels enjoyed by certain professions such as road hauliers or farmers (non-road diesel), 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.
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The objective is to reduce public spending from 57.5% of GDP in 2022 to 53.5%, to return the deficit to below 3%, against 4.7% at the end of 2022, and to reduce the debt, currently 111 .6%, to 108.3% in 2027. The government is also counting on the end of the energy shield, the gains from reforms such as pensions or unemployment insurance, full employment or even growth in economy that he expects to be more dynamic, after a slowdown in 2023.
To return to the nails, the government refuses any increase in taxes. “We are not proposing austerity or angelism: we are proposing responsibility”said Bruno Le Maire.
These measures are deemed all the more necessary as the economic environment is getting tougher. Suspended during the Covid, European budgetary rules will apply again next year and the sharp rise in interest rates is significantly increasing the debt burden, which could become the main item of State expenditure.
Already, the executive has multiplied the announcements in recent weeks. It thus froze an additional 1% of the credits of the 2023 budget (1.8 billion euros) which will be partially canceled and asked the ministries to generate 5% savings, excluding salaries, in 2024, in particular to finance the energy transition.
Between refusal to increase taxation and social tension in the face of high inflation, controlling spending looks delicate, however, especially after a painful pension reform and without an absolute majority in the National Assembly. The recent promise of a tax reduction of 2 billion euros for the middle classes and the new revaluation of the salaries of civil servants testify to the difficulty of tightening the screw.
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