The State has opened wide the tap of public spending to protect the economy and deal with the consequences of the health crisis. While France will gradually reopen, it will now be a question of debt repayment.
The epidemic has left a big hole in public finances. At the microphone of RTL, Bruno Le Maire confirmed that the health crisis and the policy of “whatever it costs” instituted by Emmanuel Macron had represented for the French State 168 billion euros in 2020. The financing of the partial activity, the solidarity fund and the exemptions of charge weighed for 40 billion euros. The rest is related to ” loss of state revenue », Detailed the Minister of the Economy. Money essential to protect employees and companies and which will allow the activity of ” restart quickly “.
120% public debt
” If we had to rebuild skills, competences, in factories, in companies, in department stores, we would waste time and be in a calamitous economic situation. », Explains the tenant of Bercy. The issue of public debt remains to be resolved. France has borrowed heavily on the markets to finance all these aid mechanisms: public debt reached 120% of GDP last year, which represents an additional 215 billion euros.
A plan in three acts
Bruno Le Maire intends to gradually reimburse, “ without brutality “. To achieve this, it counts first of all on the return of activity and growth: “ That’s why we put so much coal in the stimulus machine “. Then, he wants to closely scrutinize public spending to see which is effective and which is less. Finally, he wants the implementation of structural policies such as pension reform.