ALBAWABA - The French newspaper "Le Monde" reports that for the 50th consecutive year, the French government is set to present a budget marked by deficits, highlighting the country's inability to control its spending in line with its revenue for half a century. This has resulted in a "mountain" of debt exceeding €3,000 billion.
The newspaper notes that it will take France 50 years to reduce its debt level to below 60% of Gross Domestic Product (GDP), in accordance with European commitments. The General Financial Programming Law stipulates the need to save $12 billion annually until 2027. Economy Minister Bruno Le Maire will present the 49th budget to the National Assembly in mid-October, aiming, according to the minister, to "accelerate the pace of reducing the country's debt and cutting public spending."
France will continue to borrow €285 billion to complete the financial law (budget), and of the €16 billion in savings proudly presented for 2024, 90% of it aligns with the discontinuation of exceptional aid related to combating inflation.
The newspaper explains that earlier this year, all hopes were pinned on a review of expected public spending that was supposed to achieve savings worth several billion dollars in its quest to reduce the budget. However, measures compensating for the elimination of the tax gap on rental investment or stricter regulation of interest-free loans have already been threatened.
Furthermore, Pierre Moscovici, the President of the Court of Auditors and the High Council of Public Finances, confirmed that every French citizen has seen a 28% increase in public spending in euros compared to the year 2000.
The newspaper speculates that the debt burden will explode by 2027, reaching €84 billion, representing a 160% increase compared to 2021. Its cost will be more than double the budget allocated this year for financing the environmental transition, highlighting the wastefulness of precious revenues that could be better invested in critical matters rather than filling the pockets of international investors.
