The Court of Auditors denounces the judgment of the recovery of public finances

In its latest report, the Court of Auditors points to the increase in the public deficit and considers that the budgetary strategy put in place by the Macron government is insufficient. Ludovic MARIN / AFP

Text by: RFI Follow

In its annual report released on Tuesday, February 25, the Court of Auditors warns of the government's weak capacity to restore public finances. It calls on the government to implement "an ambitious structural deficit reduction, consistent with European rules".

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In his report, the wise men point to the increase in the public deficit. From 2.5 points in 2018 , it jumped to 3.1 points in 2019, mainly due to the transformation of the CICE, the tax credit for competitiveness and employment, into a reduction in social contributions.

In addition, there was the crisis of "yellow vests", to put it out, the government responded with measures, such as the cancellation of the fuel tax , the increase in the activity premium, the cancellation of the CSG for small pensions.

To this must be added the tax cuts, and the abolition of the housing tax for 80% of households, or even the reduction in employee contributions, totaling 17 billion euros in 2020.

An insufficient budgetary strategy

For the financial magistrates, the budgetary strategy put in place by the Macron government is insufficient. It should have benefited more from the growth that has raged since 2017 to reduce its public deficit. In addition, the levers to finance the debt are not identified. Finally, the Court of Auditors judges the increase " moderate ", but it is thanks to the very low interest rates which lighten the burden of the debt, while stressing that it is a tool which the government does not have the direct control.

In its annual report released on Tuesday, February 25, the Court of Auditors warns of the government's weak capacity to restore public finances. It calls on the government to implement " an ambitious structural deficit reduction, consistent with European rules ".

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