Debt of France: concern of the High Council of Public Finances

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France's debt swells. To cushion the dramatic shock of the health crisis on the French economy, the government released 460 billion euros in aid to businesses and the most vulnerable. These various support plans, which represent one fifth of the national wealth, weigh on public finances. A situation that worries the High Council of Public Finances.

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In its latest amending finance bill presented this Wednesday, the government expects a decline in GDP of 11%, the strongest recession in France since 1945. But this is not the only figure that worries the High Council of public finances.

With these billions of euros released to support the economy, the government predicts that the public deficit will widen to 11.4% while last year, at the cost of numerous reforms, the executive managed to reduce it to 3 %.

In addition to a record recession, France's debt is at an all-time high. It will probably reach 120% of GDP against 98% last year. A "  massive  " increase for Pierre Moscovici, president of the High Council of Public Finances. He underlines that “  since the creation of the euro zone such a level of debt had only been reached by very few countries. "

To finance itself, the State will have to borrow 260 billion euros on the markets. Only positive point: the French debt always attracts investors, since the beginning of the year France borrows at slightly negative rates.

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