Debt: Macron’s blindness | EUROtoday
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VStransfer on… there’s nothing to see! Questioned as regards to debt and public funds by our colleagues fromExpressin an interview revealed this Wednesday, May 22, Emmanuel Macron kicked in by welcoming the outcomes of his financial coverage.
Jumbled collectively, the President of the Republic boasts of getting “changed the structure of this expenditure to favor investment expenditure rather than current expenditure, preventive expenditure rather than curative expenditure, and significantly lowered taxes”, having made the selection to guard “the French at the time of Covid and the war in Ukraine” and to have “lowered taxes, invested in our public services and knew how to deal with crises”. And the tenant of the Élysée affirms that tax cuts will proceed in 2025 for the center courses…
A demotion removed from being dominated out
The president is clearly proper to emphasise the optimistic factors of his financial report. But for any observer of financial life, these sentences sound nearly like a denial at a time when the query of public debt is changing into an increasing number of burning… Coincidentally, the parliamentary fee of inquiry into the robust development in debt since 2017, launched by the Les Républicains (LR) group on the National Assembly, additionally kicks off its hearings this Wednesday, May 22, by receiving Jean-Louis Rey, the president of Cades (Caisse d'amortisation de la social debt).
READ ALSO Debt, from Hollande's simple cash to Macron's magic cash “On the subject of debt, our country is addicted,” Philippe Juvin, LR deputy and president of this fee, confided to us on Tuesday May 21. The National Assembly will not be the one one to scrutinize our accounts. In slightly over every week, the S&P ranking company will replace France's ranking… and the nation's downgrade is much from being dominated out. Finally, one other risk may materialize within the coming weeks: the position of our nation in extreme deficit process by Brussels…
More than 3,000 billion in debt
Because there are the political declarations, and alongside that, the figures that are in vivid pink. In a five-year interval, the debt has elevated from 2,000 to greater than 3,000 billion euros. The deficit was nonetheless 5.5 factors of gross home product final 12 months, or 0.6 factors greater than anticipated, and it ought to painfully attain 5.1 factors of GDP this 12 months. The return under 3% introduced for the tip of the five-year time period appears very utopian: in its newest opinion, the High Council of Public Finances, the impartial physique chargeable for issuing an opinion on the federal government's budgetary trajectory, estimates that this -this lacks “consistency” and “credibility”. The debt burden is predicted to quantity to greater than 72 billion euros in 2027, greater than the National Education finances. In quick, we have now by no means danced a lot on a volcano…
It can be unfair to make Emmanuel Macron the only real gravedigger of our public funds. For fifty years, France has been accumulating deficits. And in recent times, all our leaders have known as for the restoration of public accounts, and typically made financial savings, whereas signing checks all over the place… Emmanuel Macron was no exception to the rule. If the beginning of his first five-year time period was marked by a need to proper the boat, he rapidly bumped into the wall of the Yellow Vests, the Covid disaster, the power disaster, and that of the buying energy.
And now ? Pension reform and unemployment insurance coverage reform, in addition to the opinions, will definitely assist us get monetary savings. But they won’t be sufficient to utterly resolve the issue: the federal government nonetheless wants to seek out 20 billion in financial savings for 2025…
https://www.lepoint.fr/economie/dette-l-aveuglement-de-macron-22-05-2024-2560900_28.php