The governor of the Bank of France, François Villeroy de Galhau, estimated, Thursday March 28, that the slippage in the deficit in 2023 required us to take “finally seriously” public spending, after “fifteen years without governments holding on ( …) their commitments”.
The deterioration of the deficit in 2023, which reached 5.5% of GDP instead of the 4.9% initially planned by the government, “does of course not mean the bankruptcy of France”, he sought to reassure , but it calls for an “imperative.”
We must finally take care of public spending “seriously,” insisted Mr. Villeroy de Galhau, during a speech at Paris Dauphine University, a copy of which was consulted by Agence France-Presse (AFP). And this, “before making any potentially necessary decisions on taxes,” he said, referring to recent proposals aimed at taxing companies’ “superprofits” or carrying out targeted tax increases.
Ten billion euros in savings for 2024
Despite the slippage in 2023, the government maintained its objective of reducing the public deficit below 3% of GDP in 2027, as promised to its European partners. To achieve this, he intends to make a new turn of the budgetary screw.
Ten billion euros in savings have already been made for 2024, and 20 billion cuts are announced for 2025. But “additional savings” will be necessary, according to the Minister of the Economy and Finance, Bruno Le Maire.
“It is high time, not to decree austerity and a general reduction in spending, but to achieve this general stabilization in volume,” detailed Mr. Villeroy de Galhau. “This requires an effort of prioritization and efficiency, fair and shared by all: State, but also local authorities and social benefits.”
Parliamentarians from the majority and the opposition were invited to the Ministry of the Economy on Thursday to propose ways to save money. A second meeting in Bercy has been announced for April 9, this time to look for ways to save money within local authorities with associations of local elected officials.
