Storm warning for the public finances of France.
Already growing strongly since the beginning of the year, France's public debt should continue to increase until the end of 2020. Second confinement requires, Bercy has revised its forecasts.
In an interview with Le Parisien, the Minister of the Economy, Bruno Le Maire, said that France's indebtedness is expected to rise from 117.5% of GDP, as calculated so far, to 119.8%.
Read also: The risky addiction of euro zone banks to debt issued by governments
Evolution of general government debt since 2008 (in%) Le Figaro
This increase in debt is mainly caused by the strengthening of the support measures for businesses announced in recent days.
"
The fifteen billion euros additional for the month of November will increase the level of debt
", warned the boss of Bercy.
Jean Castex had meanwhile specified that twenty billion euros would be released to deal with the crisis.
Bruno Le Maire, however, wanted to be reassuring, believing once again that it was more investment for the future than debt weighing on the State budget: these expenses "
will allow us to bounce back very quickly and 'accelerate the transformation of the French economy to make it more competitive
,' he said.
The minister, for example, cited the government's support to help merchants develop their digital presence and their digital development.
“
Only one in three stores has a site.
We want to give traders the means to digitize,
”commented the head of Bercy.
To read also: "There is a growing grumbling": the sling of traders against the closures imposed by confinement
The fact remains that the French debt continues to climb: it should jump, in one year, by twenty percentage points, from 98.1% at the end of 2019 to 119.8% at the end of 2020. The executive warns that it will be well and truly reimbursed, without increasing taxes on households.
If more needs to be done for populations made vulnerable by the crisis, we will do it.
Bruno Le Maire at the Parisian
Bruno Le Maire also says he is attentive to the evolution of the household portfolio.
The aid already in place, including short-time working, has made it possible to greatly limit the drop in their purchasing power, argues the Minister: “
in 2020, French GDP will fall by 11%, but the purchasing power of French only 0.5%
”.
However, "
if more must be done for populations made vulnerable by the crisis, we will do it,
" he adds.
His teams are working on "
avenues that would allow when the time comes, if the situation deteriorates, to support them
", concludes the member of the government without giving further details.
A debt can be repaid.
Those who claim otherwise are irresponsible
Olivier Dussopt at JDD
In an interview with the Journal du dimanche, the Minister Delegate for Public Accounts, Olivier Dussopt, said that the crisis had cost “
186 billion euros
” to France since March: 100 billion euros in lost revenue and the rest in emergency measures, "
including three quarters engaged from the first wave
".
Short-time working alone represents more than a third - 31 billion euros - of these 86 billion.
The public deficit is now expected at 11.3% of GDP, or 248 billion euros at the end of the year, adds the minister.
An “
absolutely considerable
” amount, he judges.
However, these degradations will be temporary, promises Olivier Dussopt: “
a debt, it is repaid.
Those who claim the opposite are irresponsible,
”insists the minister.
The repayment will take "
several years
" and will be made possible by "
reforms, growth and control of public spending
", not a tax increase.
