These communes of France in virtual bankruptcy! – EconomyMorning


This is an article from the New Republic sent by one of our comrades on my mailbox which title “Saint-Pierre-des-Corps over-indebted?” The mayor asks the chamber of accounts for help ”.

“This Monday at 11:30 am, Emmanuel François, the mayor of Saint-Pierre-des-Corps, held a press conference to explain his inability to present a balanced budget. It alerts on the state of the finances of the city.

The hour is serious, this Monday morning, at the town hall of Saint-Pierre-des-Corps. On the eve of the budget vote by the city council, Mayor Emmanuel François called the press to announce that he will present an imbalanced budget, with a deficit of € 92,000 in operation, this Tuesday at 9 am. Which is illegal. This rare event would trigger a procedure that could lead to the city being placed under financial supervision by the regional chamber of accounts.

A debt of € 19.3 million. “

This situation is not specific to this municipality, in fact, very many municipalities are poorly or poorly managed, for many reasons not always attributable to local elected officials, but the latter are not always irreproachable, on the contrary.

Symbolic totems, local “major works”, an inordinate ego, sometimes conflict of interest or illegal taking of interest, there are many abuses that are not always easily dealt with in court.

And then there are the general economic difficulties, the reductions in allocations, the more or less obligatory transfers to the interco of new things which have never lowered the operating costs of our local structures.

All this is masked by a relative hypocrisy of all the actors.

The town halls pretend to balance budgets since not to do so is illegal and triggers the intervention of the regional chamber of accounts, and the auditors pretend to believe in the sincerity of the budgets presented.

Accounting creativity is a reality, for some it has even become an art. Dask Goldman Sachs who had allowed Greece to cover up its accounts.

“In a 2018 report, the regional chamber of accounts had already noted that the city was behind in terms of investments, compared to other municipalities in the stratum. She mentioned “high structural costs”, with “high personnel costs, in part due to the services offered to the population. “. It then proposed to act on different levers including “interest on the debt or staff costs. “

Our working capital is 4 days, when it is 4 months for other municipalities“.

There’s more to nowhere!

What is impressive about the ongoing collapse of our country is that everything is falling apart.

The communes no longer have money, the hospitals no longer have any money, the armies are destitute, I am not even talking about the state of our police stations, or of the school in general. Everywhere, everything is falling apart and yet never have tax levies been so important compared to GDP.

The puncture is major. The service rendered non-existent.

Terrible.

The economic crisis linked to the Covid will leave lasting traces, in particular on the finances of the smallest structures such as the municipalities.

The State will have to end up intervening and also helping… the cities of France, which you will one day discover in great financial difficulties. That day is approaching.

Only city-based management can reverse the trend, as was done in Germany 10 years ago. The swimming pools were closed, the fountains stopped, etc.

In Germany, when there is no more money, there is no more.

In France, when there are no more, there are still some, even if we don’t have them …

We invent them.

We borrow them.

Until the final catastrophe.

Stay tuned.

It is already too late, but all is not lost. Prepare yourselves !