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Debt, taxes … the impact of the economic crisis on our finances, according to the Court of Auditors

“In 2020, the shock on public finances is massive”, write the experts of the Court of Auditors in their report on “the situation and prospects of public finances”. The document, presented this Tuesday June 30 by the new president of the institution, Pierre Moscovici, draws up a first assessment of the economic blast which shook France this spring. And its impact on public finances. A jolt which should contract our country’s GDP by 11% in 2020 “a plausible hypothesis, even prudent in the light of the latest economic information”, explains the Court. A figure that could therefore be further increased by the end of the year.

Another point that alarmed the Court: the weight of the debt. According to experts, “public debt would increase by almost € 270 billion in 2020 and exceed 120 points of GDP. In amount, it would represent the equivalent of almost 40,000 € per Frenchman. ” Debt which has reached a very high level and which could be difficult to control without a strong recovery in economic activity. Which makes the Sages say that “France cannot let go of its indebtedness without exposing itself to major difficulties in the medium and long terms.” Furthermore, the country was not already a good student in terms of public financial management before the crisis. The Court of Auditors does not hesitate to emphasize that the Hexagon has approached this powerful economic shock with “margins of action insufficiently restored”. Manner of saying that France is not doing enough to reduce public expenditure, or at least better control it.

>> Read also – Pierre Moscovici takes over as head of the Court of Auditors

Towards higher taxes?

In his June 14 speech, President Macron insisted that he would not raise taxes. What to try to bring some serenity to the French for the coming months. However, the Court’s experts stress that controlling expenditure “will also depend on the directions chosen

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“data-reactid =” 25 “>Emmanuel Macron validates the weight penalty penalizing SUVs
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