the true causes for the explosion underneath Macron | EUROtoday

First to go on the grill, François Ecalle engaged in a calculation train which had the benefit of elevating the controversy. According to his estimates, of the 911 billion enhance in debt between the tip of 2016 and the tip of 2023, the measures to extend and reduce public spending and obligatory deductions determined by the Macron authorities could be chargeable for 20 to 35% of progress. of our debt. The deterioration of the financial system linked to the Covid disaster could be chargeable for solely 0 to 10%, as a result of the rebound in progress over different years made it doable to compensate for the autumn. Finally, 50 to 70% of the rise in our debt might be defined by “the legacy of History”.

Lower taxes

“The increase of 1.7 points of GDP in the French deficit results entirely from the drop in public revenue as a percentage of GDP. Public spending as a percentage of GDP in 2023 is at the same level as in 2016,” defined François Ecalle. In different phrases, it’s the tax cuts which have widened our deficit. “It was desirable to reduce compulsory contributions, but it was first necessary to reduce expenditure and not put the cart before the horse,” continued the general public finance knowledgeable. An error which was not solely that of Macron in accordance with him, but in addition of earlier governments. According to François Ecalle, “instead of reducing spending or increasing revenues, we are preserving the purchasing power of households and the competitiveness of businesses, but we are postponing the problem until later.”