If the “at the same time” has officially gone out of fashion at the Elysée, it is indeed an exercise of the same type that the executive seems to be engaged in in terms of public finances. “We have reached the alert level on public finances”, struck Bruno Le Maire, Monday, June 27, on RMC and BFM TV. “The financing conditions have changed. We could borrow at negative rates and today we are borrowing at over 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”, insisted Mr. Le Maire again, while the public debt exceeded 2,900 billion euros in the first quarter, or 114.5% of GDP.
However, the government is preparing to present, Wednesday, July 6, a bill on purchasing power together with an amending budget which should significantly increase the bill for public expenditure. 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 wheels” measure yet to be specified, inflation check , tripling of the Macron bonus, thawing of the civil servants’ index point, abolition of the TV license fee… A Prévert-style inventory, which probably already amounts to tens of billions of euros. Thus, the only revaluation of social minima of 4% from July should cost a total of some 8 billion euros.
“Not everything is possible”
But the tenant of Bercy refutes any contradiction in the terms: “Politics is about choices”, he still assured on RMC and BFM-TV. “Additional spending of the order of 20 or 25 billion euros on fuel, as proposed by certain political formations, is too costly, or something will have to be given up. Everything is not possible »he swept away, in reference to the proposals of the oppositions, which call for tax cuts and price blockages at the pump.
Saturday, in an interview with Agence France-Presse, Emmanuel Macron did not say anything else, indicating that the expected roadmap of Elisabeth Borne, Prime Minister confirmed in her role, will have as a red line “not to increase taxes or the debt”.
“We will be demanding of the government so that it is funded. The French debt situation today is very serious”also alerted the boss of the deputies Les Républicains (LR) in the National Assembly, Olivier Marleix. “The government cannot say: ‘Come on, 30 billion more debt!’ It would be irresponsible.”, he estimated, Monday on Europe 1promising that the LR deputies “will make proposals on the subject of financing”.
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