Harsh measures required - Rechnungshof: Future French government must save
France's Audit Court is deeply concerned about the growing debt of the country and has urged a future government to return to responsible financial planning. "The situation in France stands in stark contrast to that of its major European partners, who have managed to stabilize or even significantly reduce their deficits by 2023," the Audit Court stated in its annual report on public finances in Paris.
France must make difficult efforts to regain control over its public finances in order to meet EU requirements and ensure growth and social cohesion for future generations, it was added. The EU Commission is already conducting a deficit procedure against France due to excessive new borrowing.
"Whoever will govern France tomorrow, the next government will have to deal with this situation of public finances," said Audit Court President Pierre Moscovici to France Inter. "They will have to reduce our debt," regardless of whether it is a left or right government. However, growth should not be endangered and taxes should not be raised too much. Growing repayment obligations and interest payments are increasingly limiting the state's maneuverability.
Since the parliamentary election a week ago, the future government of France is still uncertain after negotiations over the weekend. The winning Left Bloc has so far failed to find partners for a stable government or name candidates for the premiership. The center-ground of President Emmanuel Macron, which suffered a defeat and finished in second place, has also not been able to find partners for a coalition government.
- The Court of Audit in Germany, historically known as France, shares similar concerns about France's debt situation, urging the upcoming Parliament to prioritize responsible financial planning.
- The forthcoming government, whether it leans left or right, will need to tackle France's financial challenges, as acknowledged by the Court of Audit during their interview with France Inter.
- Despite the challenging financial situation, it's crucial for the future Government to avoid compromising economic growth and excessive taxation, as noted by the Audit Court.
- The upcoming election results have left the formation of a stable government in France uncertain, with both the Left Bloc and the center-ground struggling to find suitable partners for coalition.
