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Why growth will not be enough to pay off the Covid-19 bill

2020-11-29T22:13:36.675Z


DECRYPTION - Bruno Le Maire assures us that there will be “no tax increases” to offset public spending. The equation promises to be complex.


Bruno Le Maire once again reaffirmed it on Sunday in

Le Parisien

.

Promised, sworn: France will not increase taxes to reimburse the Covid-19 bill.

The country, he assures, will return to the nails thanks to the increase in its growth, to the control of its operating expenses and to structural reforms, such as that of pensions ... The reality remains, when we base ourselves on of facts, is a little more complicated.

Read also:

France facing the wall of colossal debt

Take growth.

Over the whole of the 2010 decade, the French GDP grew by an average of 1.5% per year, a level of growth in national wealth far too low to hope to overcome a stock of borrowing which has exploded by more than 20%. points of GDP in a few months.

Admittedly, the 100 billion stimulus plan is supposed to boost GDP by one point in 2021 but this support will not weigh heavily after France has suffered an 11% recession this year ...

On the control of spending, the past does not give cause for optimism either.

During the last

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Source: lefigaro

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