2023-09-27 18:35:24
The trading room of Agence France Trésor, at the Ministry of Finance, in Paris. François BOUCHON/Le Figaro
DECRYPTION – Paris will borrow 285 billion, an amount which will exceed the record for 2023, which amounted to 270 billion euros.
Higher interest rates and increasing debt volume. The cocktail is explosive. And it will force the tenants of Bercy to have to accept the fact that the burden of the French debt becomes the first budget of the State, ahead of school education.
It will in fact reach 52 billion euros in 2024, 56 billion in 2025 and 61 billion in 2026 and more than 70 billion in 2027. The executive is in fact moving forward at a particularly peaceful pace of debt reduction. From 111.8% in 2022, the debt would land at 108.1% of GDP in 2027, a very high level in Europe.
Also read: When can we expect interest rates to fall?
The year 2024 does not bode well for the State’s debt service. On the rate side, Paris is refinancing today, for its ten-year securities, around 3.4% when these bonds were moving into negative territory in 2021. And Bercy does not foresee any easing in the medium term. In its budgetary documents, the ministry indicates that it is counting on ten-year rates, at the end of 2024, around…
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