No, inflation is not the friend of debt

Now here we are.

For ten years that the Cassandres of all kinds have been warning about the unsustainability of the level of French debt (which reached 2900 billion euros at the end of March), the French had not yet measured the consequences.

Everything was going well, or almost, in the best of all possible worlds, with historically low or even negative interest rates allowing the State to refinance itself on the markets at a lower cost, while the outstanding debt grew each year ( + 440 billion under the previous five-year term).

But with the international geopolitical tensions linked in particular to the war in Ukraine, against a background of the return of strong and lasting inflation everywhere in the world, the situation has changed and the French are beginning to feel the ringing and stumbling effects.

In one year, the tricolor debt burden has indeed jumped by nearly 18 billion euros, and this is unrelated to the recent surge in government bond rates (ten-year OATs issued by France)

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