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The fate of the Covid debt fractures the political class

2021-03-03T20:22:21.877Z

DECRYPTION - The “cancellation” of debts held by the ECB is gaining ground, even on the right, but it is seen as ineffective and contrary to treaties.



What to do with the debt that overwhelms the euro zone countries?

Who will pay for it?

Between supporters of a cancellation and defenders of reimbursement according to different modalities, politicians and economists are faced with a puzzle, thirteen months before the presidential election.

In front of them, the “wall” of public debt, fortified by the “whatever the cost” in force since the start of the Covid-19 epidemic, is proving colossal: 2,674.3 billion euros at the end of September 2020, or some 116% of gross domestic product (GDP) - including around 215 billion euros from the health crisis.

Read also:

How France let its debt drift

"We must erase this Covid debt"

, proclaims part of the left.

"Unthinkable"

, responds a section of the right, the International Monetary Fund (IMF) and the government, where the Minister of the Economy wants to

"confine"

this debt, counting on growth, control of public finances and reforms to overcome it - without tax hikes, he promises.

But, in this debate, the division

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Source: lefigaro

All news articles on 2021-03-03

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