“An increase in revenue of around 87 billion euros is possible” | EUROtoday

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DShould we settle for the alarmist discourse surrounding the debt? It's the concern of the second. Global warming can wait, the combat towards unemployment and insecurity are now not priorities. What we must always concern, greater than something, is debt. That of the State, that which weighs, due to our inconsistency, on the delicate shoulders of future generations.

This topic have to be a theme of the marketing campaign for the European elections in June as a result of it refers to a political alternative. Social democracy, involved with preserving a welfare state, misplaced the ideological battle and liberalism has a victory, the dismantling of the welfare state and the privatization of a lot of public companies.

With French public debt amounting to three,101.2 billion euros in 2023, or 110.6% of gross home product (GDP), and a public deficit of 5.5%, or 154 billion (“Information rapid” no. 74, Insee, March 26, 2024), the government maintains its objective of reducing this deficit to 3% in 2027 by already proposing 10 and 20 billion budget cuts in 2024 and 2025. It does not plan to act on recipes.

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However, from 2008, the widening of the deficit can be explained by measures intended to reduce State revenue (abandonment of taxes on capital gains from the sale of companies, reduction in their tax rate and the ISF , etc.). The French paradox is that despite these targeted tax cuts, accentuated under the Macron governments, the rate of compulsory deductions (effective taxes and social contributions received by public administrations) has remained high. It is down very slightly in 2023 to 43.5% of GDP, compared to 45.2% in 2022.

New costs announced

But, in fact, it is the distribution of the tax effort between economic agents that has been modified. Since 2010, compulsory levies on households have increased, according to the French Observatory of Economic Conditions (they went from 25% of GDP to 28% in 2023), while levies on businesses increased from 17% to 16 % (“OFCE Policy brief” no. 112, February 22, 2023).

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Under the Macron period, the annual common improve in income between 2017 and 2023 was 2.8%, whereas expenditure elevated by 3.7%, a reasonable determine given the inflationary context. It additionally contains distinctive quantities, estimated between 2020 and 2023 at 241 billion euros, with emergency measures linked to the well being disaster after which the vitality disaster.

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