'No education, security' funds with France public debt: Chief auditor

By Al Mayadeen English
Source: Agencies
15 Jul 2024 13:02
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France's chief of the national Court of Audit tells France Inter radio that rising public debt leaves no room for green transition plans.

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Facade of the building of the Ministry of Economy and Finance, in Paris, on August 2, 2021 (AFP)

Piling public debt will leave France with no funds to finance education, security, or its flagship net zero carbon plans, said the head of the national Court of Audit.

"We are already paying 52 billion for its reimbursement. We will pay 80 billion for its reimbursement in 2027. This means that there is no more room ... to pay for education, justice, security, and the ecological transition," Pierre Moscovici told France Inter radio with the public debt crossing 3.1 trillion euros.

Moscovici, who also served as France's Finance Minister between 2014-2019, said that the next government will have to reduce this debt, forecasting that the public debt in 2027 will be 3.6 trillion euros.

The French government claims that the main reason behind the current financial situation is COVID-19 spending.

The chief auditor rejected this claim, saying that "all European states have protected their citizens in exactly the same way ... We simply have 15 points more public debt than before the Covid crisis."

France is facing a deadline in September to submit its plan to Brussels, detailing steps to bring its public deficit back in line with the European Union's limit of 3% of GDP by 2027. Last year, France's public deficit reached 5.5%, prompting scrutiny and concern.

The European Union has already initiated a procedure for excessive public deficit against France, indicating a serious warning that will require careful monitoring of France's efforts to rectify its fiscal situation.