The third amending finance bill since the start of the coronavirus crisis will be examined this Wednesday morning in the Council of Ministers. Objective: integrate the new spending planned to support sectors in difficulty into the 2020 budget. Or no less than 40 billion euros in support for industries such as the automobile, tourism and aeronautics. An amount which is added to the emergency plan of 110 billion euros already released for businesses. To pay the bill, the government promises not to raise taxes, but will therefore have to borrow and increase the debt.
"Interest rates are very low today"
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"What matters in the budget, what we pay each year, is the interest on the debt, what is called the debt load. This debt load should not increase and as interest rates are today "Very low today and will stay for several years, we have every interest in going into debt to respond to the crisis. This is the choice that many countries have made," said Laurent Saint-Martin, the general rapporteur. Budget (LREM) to the National Assembly, at the microphone of Europe 1.
"Raising taxes means killing a recovery in the bud"
During the crisis, the time is no longer for budgetary austerity, supports the vice-president of the circle of economists Christian de Boissieu: "Above all, we must not, in the short term, raise taxes. To raise taxes, that means to say kill in the bud a recovery that is not going to be terrible anyway. There is no point in dying in good health from a budgetary point of view. I think that we really have to let slip today because 'There are no other solutions."
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On the other hand, after the recovery, France will have to show its capacity to control its budget again, in order to be able to continue borrowing at low rates.