The Court of Auditors reproached Tuesday the French government for its "limited" ambition to redress public finances, the evolution of which, with a debt that is not receding, is "worrying", especially since the measures decided against the movement of "vests" yellow. " "The recovery of public finances, already very gradual in recent years, is now almost at a standstill", notes in its annual report the financial institution, which calls on the executive to plan "a reduction in the structural deficit ambitious, consistent with European rules, and not rejecting (...) most of the efforts to be made ".
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The government has planned for 2020 to reduce the public deficit to 2.2% of gross domestic product (GDP) against 3.1% last year, then to reach 1.5% in 2022. But, pointed out the Court, the decrease planned between 2019 and 2020 reflects "essentially the technical impact of the transformation of the CICE" (the Tax Credit for competitiveness and employment replaced by reductions in perennial charges) and not additional efforts to save or expenditure control. And if the reduction in the deficit resumes "at a moderate pace from 2021", this is done "without incorporating the catching up of the gaps" accumulated before. "This trajectory therefore only shifts the recovery to be accomplished."
Public spending growth could be higher than forecast in 2020
In addition, the Court questions the "credibility" of the trajectory announced by the executive when it has already planned to continue the tax cuts, whether corporate tax or tax housing, without "any measures (...) identified" to control spending, such as the abandonment of the workforce reduction objectives in the public service. "In 2020, risks exist on the achievement of the objectives", warns the Court. The increase in public spending could be higher than forecast, because it is subject to elements "beyond the direct control of the government", such as the evolution of interest rates. And the government may have overestimated the savings generated by the unemployment insurance reform.
In addition to the deficit, public debt rose in 2019 to 98.8% of GDP, before a relative stabilization expected this year at 98.7%. "The contrast is striking with the average situation of our partners," criticizes the financial institution, which stresses that public debt has fallen by more than 9 points in the euro zone, excluding France and Germany. Consequence: France has "less room for maneuver for the policy it intends to pursue, especially in the event of a recession or other major shock", warns the Court, still awaiting the appointment of Didier's successor Migaud as first president.