Borrowing, spending: the “alert level” has been reached on public finances, according to Bruno Le Maire – Le Figaro

The Minister of the Economy explained on Monday that today France borrows “at more than 2%” to finance public spending, when it did so recently at negative or very low rates. France has reached its “high alert” on public finances, Economy Minister Bruno Le Maire said on Monday, as the executive seeks a compromise with the opposition for its power bill. of purchase. “Everything is not possible, quite simply because we have reached the alert level on public finances”, affirmed Bruno Le Maire, adding that “the financing conditions have changed” and that today France borrows “at more than 2%” to finance public spending, when it did so recently at negative or very low rates. Read also Bruno Le Maire: “Jean-Luc Mélenchon is a Gallic Chavez” A public debt that exceeds 2,900 billion euros Asked about the proposal made by several opposition parties, such as Les Républicains or the National Rally, to a reduction in fuel tax, Bruno Le Maire assured that the government was going to “discuss” with these formations but that “the spirit of compromise must be accompanied by a spirit of decision”. “Additional spending of around 20 or 25 billion euros on fuel, as some political formations are proposing, they are too expensive, or else we will have to give up other things,” he said. . SEE ALSO – Pierre de Montlivault: “The current energy shock is the equivalent of an oil shock” According to INSEE, French public debt exceeded 2900 billion euros at the end of the third quarter, ie 114.5% of GDP, also due to sluggish economic growth. It is not this amount that “concerns” Bruno Le Maire, but the fact that “financing conditions have changed” for France, with the rise in interest rates which has begun and will continue, the Central Bank European Union seeking to reduce inflation. “Part of the debt burden is indexed to inflation,” the minister recalled in particular, which represents “several billion euros” additional to be spent to repay this charge each year. Read alsoAt the top of Bercy, a “phoenix” named Bruno Le Maire “My job as Minister of Finance is to return to balanced public finances by 2027”. “Politics are choices (…) It is imperative to reduce public debt” but “we must at the same time protect our compatriots who are the most fragile, but protect them responsibly”. “We will have to decide within a framework which is constrained, which is that of our public finances”, he insisted, also confirming the cap at 3.5% of the increase in rents, as well as a revaluation of 3 .5% of APL. SEE ALSO – Inflation: “Economists no longer see the end”, warns Anne de Guigné