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Recovery plan: the right worried about "mountains of debt"

2020-09-03T10:09:34.496Z


For The Republicans, if the support for the economy announced by Jean Castex is going "in the right direction", the government plan ignores the thorny issue of debt and the urgency of reforming the country.


"I would not like this recovery plan to be the cover-up of an absence of reforms."

Like others on the right, Eric Woerth did not wait long before expressing his concerns following the Prime Minister's announcements concerning the State's budgetary commitments in favor of the country's economic recovery.

"A risk of future taxes, European or national"

For the LR chairman of the Assembly's finance committee, it is not the voluntarism displayed by Jean Castex, nor the size of the 100 billion envelope that makes him tick but rather the risk of seeing France s 'engage in a dangerous debt spiral.

"We see mountains of debt accumulating," said the deputy for Oise.

"We are widening the deficit, adds Damien Abad for his part," magic money does not exist.

This plan carries a risk of future taxes, whether European or national ”.

The president of the LR group in the Assembly also sees a contradiction between the ambition of this plan, which goes "in the right direction" and the "ambient gloom" of a France still mapped in red zones, because of the Covid.

He would like the state to support this plan with "more enthusiasm and optimism".

By the end of April, the Republicans themselves pleaded for the urgency of a stimulus plan.

Read also: Republicans unveil their rescue plan for the economy

Today, they recognize that this plan is “massive”, as Castex maintains in an interview with Le Figaro.

But if they take note of the efforts concentrated on competitiveness, support for production and employment, they remain cautious about the unknowns of financing.

“Every minister who asks for a little money gets it and the Prime Minister was careful not to tell us how it will all be funded.

We can say that Europe will finance up to 40 billion, but it may be true and on the other hand, Europe is us.

We know that France will contribute to it at some point, ”warns Woerth.

"The fundamental reforms have not been made"

Without denying the unprecedented nature of the economic situation, nor the urgency of finding solutions, the elected official nevertheless considers it important to approach this crisis by becoming aware of “past errors” and not only with figures.

Because according to him, this “late” plan should not obscure the weaknesses of the French economy.

"We could have approached this crisis in a better situation but the fundamental reforms have not been made, the French deficit represents 80% of the European deficit in the euro zone and we are experiencing massive unemployment," he recalls.

Eric Woerth will vote for the government's stimulus plan, but he will do so while considering the risks.

"Because this plan can also be a ticking time bomb, especially if you find yourself having to manage recurrent, unfunded expenses."

The parliamentarian points in particular to the increases granted in the public service.

When Jean Castex inscribes his plan in a vision for 2030, Eric Woerth believes that the government is "overplaying" the historical dimension of its responsibilities.

As if launching a call for the wisdom of the rulers, the LR deputy concludes: “You know, the best stimulus, the most lasting, is to reform the country.

The government is taking action to revive it, that is fine, but there is daring in the spending and not that much in the targeted objectives.

I am eminently in favor of this relaunch being an accelerator of transformations.

Relaunching the country is not simply a question of money and I am afraid that this plan will be the Canada Dry of the reforms that should be made. ”

Source: lefigaro

All news articles on 2020-09-03

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