Public funds, symptom of an actual or supposed downgrading of France on the European scene | EUROtoday

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Emmanuel Macron at the French headquarters of Microsoft in Issy-les-Moulineaux (Hauts-de-Seine), May 13, 2024.

In latest weeks, this has been the fitting's angle of assault in opposition to the federal government and its administration of public funds. The deterioration of the accounts, accelerating the true or supposed downgrading of France on the European scene, would have pushed France into the unenviable bloc of Southern European nations. While the left encourages the chief to take inspiration from the American mannequin by spending extra, the fitting brandishes the last word menace, though recurring for the reason that euro zone disaster: by retaining the floodgates open, France can be within the strategy of take the street to Greece. This is the prophecy of the president of the Les Républicains celebration, Eric Ciotti, in The echoes from March 20.

Ironically, this French decline would happen on the very second when the state of affairs of Athens is enhancing within the eyes of buyers, for the reason that score company Standard & Poor's, which should ship its verdict on French debt on the finish of May, famous the score assigned to Greek debt in October 2023 and is making ready to take action once more.

“We will soon be the last in Europe: Portugal has straightened out its finances, Greece is following the same path, and we are letting our public spending tirelessly deteriorate, added the President (LR) of the Senate, Gérard Larcher, on April 14 in The Sunday Journal. Which weakens our economy and our sovereignty. » Fifteen years after the great crisis of 2008, is France really becoming the bad student of the euro zone? Rightly or wrongly, she loves asking the question.

The main indicators of public finances tend to show that France's situation has deteriorated compared to its European neighbors on a strictly budgetary level. “The problem of public finances in France is for us the main subject of concernconfirms Bertrand Plutaud, head of the France office at the Organization for Economic Co-operation and Development (OECD). The figures show that the situation has deteriorated in recent years. France is in fact the country of [l’union monétaire] including debt, compared to GDP [produit intérieur brut], has increased the most since 2013 – by 16 points, compared to a drop of 4.7 points on average for the euro zone. »

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At the identical time, the nations of Southern Europe, hit by the subprime disaster from 2008 after which by that of sovereign money owed, carried out a pressured restructuring. Like Portugal, whose debt has fallen by 32 factors in ten years, or Greece, the place its debt has fallen by 16 factors, though it stays at excessive ranges (99% of GDP for Portugal, 160% of GDP for Greece).

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