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Agnès Verdier-Molinié: “The government sees the debt wall coming with the rise in interest rates”

2024-02-18T18:51:24.323Z

Highlights: Agnès Verdier-Molinié: “The government sees the debt wall coming with the rise in interest rates” “When money was almost free, Bercy spent almost unlimitedly without the debt burden increasing. There was no incentive to reduce spending. But today we cannot continue with deficit levels like this,” he says. “We would then have to make extremely drastic cuts in spending, and much more than 10 billion euros would be necessary,’ he adds.


INTERVIEW - The director of the iFrap Foundation believes that there is a vital need to save money.


LE FIGARO.

- Why did the government have to announce additional savings?

Agnès VERDIER-MOLINIÉ.

-

 There is no more choice.

France is seeing the debt wall arrive with the rise in interest rates.

When money was almost free, Bercy spent almost unlimitedly without the debt burden increasing.

There was no incentive to reduce spending.

But today we cannot continue with deficit levels like this.

Otherwise, with debt rates, which are around 3%, and which could continue to rise, for example if the rating agencies downgrade France's rating, the French debt burden could soar to almost 100 billion euros per year.

We would then have to make extremely drastic cuts in spending, and much more than 10 billion euros would be necessary.

It is therefore now a question of avoiding much greater levels of cuts and much more...

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Source: lefigaro

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