Every morning, Nicolas Barré takes stock of a current economic issue.

For the first time in history, the ten-year French debt rate is negative, it is less than 0%.

Which means very concretely that all those who lend money to the French State are ready to give him a free credit. And even more than free, they prefer to lose some money by lending to France rather than investing their cash in riskier investments. As much to say it immediately: it is still the sign of a financial system that works on the head. The French state is heavily indebted. Our debt is close to 100% of GDP. Better: this debt does not fall since we are still in deficit. Every year, the state continues to borrow to make ends meet. And yet, we are credited at 0%.

And why do we walk on the head?

Since the 2008 financial crisis, central banks have lowered interest rates to support activity. And they bought huge amounts of state debt to avoid a catastrophe. Since then, they have found additional reasons to maintain this policy of supporting the economy, for example the trade war. But this very low interest rate policy has a lot of negative effects. First, it is the paradox, it weakens the banking system that this policy initially aimed to save. When interest rates are at zero, banks make fewer margins. Then, it penalizes all those who have money aside: saving does not pay much. Finally, this is pushing businesses and households too much into debt.

But it's a good deal for the state.

Good or disastrous. Good yes because the debt burden of the French state, for example, rose from 42 to 37 billion in less than a year according to Bercy. Realize: 5 billion savings falling from the sky. And this could double again, according to projections by the Banque de France. But it also means that the state makes these savings without making any effort. Thank you ECB! Under François Hollande, 40% of the decline in the deficit came from lower interest rates. And that continues and, unfortunately, this does not encourage the state to reform because expenses are falling alone. It is obviously very perverse. And it will not last forever.