Debt of France exceeded 95% of GDP.
The lack of growth leads to mechanically an increase in public debt. More than 2.000 billion euros, the French debt exceeded 95% of GDP
The news came Tuesday morning. French public debt has officially surpassed the 2,000 billion euros. A 2.023 billion, it now stands at 95.1% of GDP . The 60% Maastricht is a distant memory. Reduced to the level of each French, this equates to a debt of around 30,000 euros per person. During the second quarter of 2014, the public debt increased by € 28.7 billion, or 1.1 percent of GDP.
However, components of this debt will follow not the same growth path . The national debt, which represents 80% of the total public debt increased by 2% in the last quarter as the debt of Social Security (11% of the debt) fell by 2% and the local authorities (9% of total) also fell by 1%.
Every second the interests of the public debt reached 1.500 euros or 45 billion euros over an entire year. With a deficit expected to reach 4.4% of GDP this year and deferring the target of 3% in 2017, the curve of public debt is not ready to reverse. The government has set a target of reducing public spending by € 50 billion by 2017 but probably not enough to prevent an increase in the tax burden, which already reach 45% of GDP, in a sluggish economy. “The tax increase stifles economic actors when planing does not allow a straightforward spending cuts” says Charles-Antoine Schwerer cabinet Asterès.
The other European countries are not necessarily better off even if situations are very different … The debt / GDP ratio reached 100% for Spain, 135% for Italy, without even mentioning the 175% of Greece. Germany fared better with a ratio of 76%. If the rate at which France borrows on the markets remains very low ( 10-year OAT 1.2% ), the debt increases mechanically because the dynamics of the French economy is not strong enough cover the cost of government borrowing (with inflation at 0.4% and 0.4%).
JG
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