the federal government should deal “finally seriously” with public spending, believes the governor of the Banque de France | EUROtoday

The governor of the Bank of France, François Villeroy de Galhau, estimated, Thursday March 28, that the slippage within the deficit in 2023 made it essential to take care “finally seriously expenses” public, after “fifteen years without governments keeping (…) their commitments”.

The deterioration of the deficit in 2023, which reached 5.5% of GDP as an alternative of the 4.9% initially deliberate by the federal government, “does of course not mean the bankruptcy of France”he sought to reassure, however she requires a “imperative”.

You must take care “finally seriously expenses” public, insisted Mr. Villeroy de Galhau, throughout a speech at Paris Dauphine University, a duplicate of which Agence France-Presse (AFP) consulted. And this, “before making any potentially necessary decisions on taxes”he estimated, in reference to current proposals geared toward taxing “superprofits” companies or to hold out focused tax will increase.

Ten billion euros in financial savings for 2024

Despite the slippage in 2023, the federal government maintained its goal of lowering the general public deficit beneath 3% of GDP in 2027, as promised to its European companions. To obtain this, he intends to make a brand new flip of the budgetary screw.

Ten billion euros of financial savings have already been made for 2024, and 20 billion cuts are introduced for 2025. But “additional savings” will likely be vital, in line with the Minister of Economy and Finance, Bruno Le Maire.

“It is high time, not to decree austerity and a general reduction in spending, but to achieve this general stabilization in volume”detailed Mr. Villeroy de Galhau. “This requires an effort of prioritization and efficiency, fair and shared by all: State, but also local authorities and social benefits”.

Parliamentarians from the bulk and the opposition had been invited to the Ministry of the Economy on Thursday to suggest methods to save cash. A second assembly in Bercy has been introduced for April 9, this time to look, with associations of native elected officers, for potential financial savings inside native authorities.