“We reached the alert rating,” assured Bruno Le Maire on Monday, while the purchasing power law will cost several tens of billions of euros.
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If the “at the same time” has officially passed from fashion to the Elysée, it is a exercise of the same type that the executive seems to be engaged in public finances. “We have reached the alert rating on public finances,” said Bruno Le Maire, Monday, June 27, on RMC and BFM-TV . “The financing conditions have changed. We could borrow from negative rates and, today, we borrow at more than 2 %. When inflation increases, the debt burden also increases by several billion euros”, justified the Minister of the Economy. “It is imperative to reduce our public debt, which is an attack on the independence of our sovereignty,” said the Mayor, while public debt exceeded 2,900 billion euros in the first quarter, i.e. 114.5 % of GDP.
However, the government is preparing to present, Wednesday, July 6, a bill on purchasing power with a correction budget which should singularly increase the bill for public spending. Extension of the price shield on gas and electricity, introduction of a “rent shield”, discount of 18 cents at the pump at least until August, revaluation of pensions, “big rollers” still to specify, inflation check , triple of the Macron premium, thaw from the index of civil servants, removal of the TV royalty … An inventory at the prevert, which is probably already in the tens of billions of euros. Thus, the only revaluation of social minima of 4 % from July should cost in total some 8 billion euros.
“everything is not possible”
But the tenant of Bercy refutes any contradiction in terms: “Politics are choices,” he said on RMC and BFM-TV. “Additional expenses of the order of 20 or 25 billion euros on fuel, as proposed by certain political parties, are too expensive, or we will have to give up something. Everything is not possible”, a- he swept away, in reference to the proposals of the oppositions, which claim tax cuts and price blockages at the pump.
Saturday, in an interview with the France-Presse agency, Emmanuel Macron did not say anything else, indicating that the expected roadmap of Elisabeth Borne, Prime Minister reinforced in his role, will have for red line of “n ‘Increase neither taxes nor debt “.
“We will be demanding with regard to the government to be funded. The situation of French debt today is very serious,” also alerted the boss of the Republicans (LR) to the Assembly National, Olivier Marleix. “The government cannot say:” Go hop, 30 billion additional debt! “It would be irresponsible,” he said on Monday On Europe 1 , promising that LR deputies “will make proposals on the subject of funding”.
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