Deficits: the Court of Auditors pin, Holland quips – The Obs

The Court of Auditors doubts the ability of France to keep its budgetary commitment next year. In its report released Wednesday, June 29, we read:

“The goal of reducing to 2.7%, the deficit in 2017, on the basis of decisions known aujourd ay, a high risk of not being achieved. “

There will be enough revenue yet! According to the magistrates of the High Council of public finances, the government’s economic forecasts are realistic, and government revenue should be at the meeting, provided that the Brexit has no significant recessionary impact.

But there will not be enough savings. The Court found that the government does not provide enough budget cuts for France to follow the path of return to equilibrium plotted in the stability program it submitted to Brussels in April. What’s going on?

New expenses

In recent years, the government had yet almost better than advertised. The Finance Ministry had exceeded its targets in 2014 (4% against 4.4% expected) and in 2015 (3.6% against 3.6% expected). But new expenses were incurred. Didier Migaud, first president of the Court of Auditors says:

“These overruns are primarily related to announcements of new measures and sub-budgétisations (…) This increase is mainly due to the. emergency plan for employment, aid to farmers and ranchers and rising for the Ministry of Defence. “

Taxes, premiums … Holland plays Santa to a year presidential

the thawing index point of the civil service, which are indexed salaries of civil servants, as these expenses affect the budget plan for 2017. the Court of Auditors list in addition a series of litigation or recapitalization of public enterprises, which together could be costly.

“the analysis of the Court on the extent of savings in spending deserve to be nuanced” wrote Bercy at the end of the same report. Or: “We do not share the remaining encryption savings in the plan to save 50 billion euros proposed in the report.”

The witticism of François Holland

the alert of the Court of Auditors has not escaped Francois Hollande, who quipped on the intellectual functioning of the institution of the rue Cambon, which is itself derived, even if any party “fast enough” as he said. Wednesday, June 29, in the midst of crisis management Brexit, he said:

“The Court of Auditors doubt essence is its function The Court of doubt accounts, so it is..”

He showed a certain serenity about keeping commitments of France:

“If the growth was that we think we can estimate today at 1 7% next year, and if we continue our efforts to control spending and we were extremely vigilant on the execution of our budget, we should achieve this result. “

and remember, philosophically, that in 2015 the Court had already doubted the ability of France to fulfill its objectives. Public deficits had yet revealed lower than what was announced.