The debt is expected to exceed 120 % of GDP by 2020. This surge in the public debt implies a change of attitude and the government is preparing to.
Fiscal discipline, praised by Emmanuel Macron since his arrival at the Elysée palace, was swept by the epidemic of sars coronavirus. In supporting the French economy,” whatever it costs “, the government has agreed to see deficits widen and public debt to explode.
A debt larger than the national wealth
While the government has presented its 3rd amended finance act, the analysis confirms that, in 2020, the debt of France will reach 120.9 % of GDP. In other words, the wealth of the country is not sufficient to clear this debt.
Often challenged for the lack of means, particularly by the nursing staff, the president of the Republic had already confessed, in April 2018, the danger of this debt :
A change of approach for learning how to live with debt
Although the fears expressed for the future generations are still present, the government carries out its decision to get rid of this rigour. In times of crisis, the debt stands out as the only possible way. In contrast, the 2008 crisis has served as an example, and lessons have been learnt. To sustain the cost of the debt crisis by the taxpayers represents a major obstacle to the economic recovery.
The action plan of the government seems to be so drawn. He will have to learn to live with the debt. This last will have to be repaid but with the fruits of the recovery to come, and not with the supplementary levies on the national economy. And this evolution of morals requires very big efforts to pedagogy on the part of the government. It will be necessary to make it clear to the citizens but also companies, that this development will not result in the acceptance of all the claims.
Leave the debt rising, while showing serious and budgetary rigour, is the new equation that there is a need to understand. An explanation all the more difficult to succeed, that we are still waiting, for the month of September, the comprehensive plan to revive the economy announced by the Minister of the Economy. And that said recovery plan for said additional expenses ….