Rising interest rates threaten debt sustainability

The surge in interest rates knows no truce confectioners.

Surprise post-Christmas: the rate of French Treasury bonds (OAT) to ten years exceeded 3% on Tuesday for the first time since the beginning of 2012. A year ago, let us recall, the State s was still in debt at 0.20%.

This increase in borrowing costs is causing the cost of debt to explode.

In one year, the interest paid on the national public debt has increased by 34%, to reach 51 billion euros in 2022. According to the governor of the Banque de France, François Villeroy de Galhau, each additional point on the interest rates interest will ultimately result in an annual increase of 40 billion euros in the debt burden, almost the level of the defense budget.

Read alsoIn the back of the European pack, France is bogged down in terms of debt

This increase in the cost of money falls to the worst, when the government plans to raise 270 billion euros of new loans on the markets next year.

Especially since the European Central Bank (ECB), which had become accustomed…

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