Head of the Court of Auditors: The country's debt may threaten to result in an avalanche

The head of the French Court of Audit, Pierre Moscovici, said on Friday that the country's debt had reached a level where a snowball effect could occur and France should be careful not to face an avalanche. He also assessed that public finances had degraded and the country was losing credibility.

Moscovici, former Minister of Finance and former EU Commissioner for Economic and Financial Affairs, is mentioned among the candidates for prime minister – writes “Le Figaro”.

“We are experiencing a political and democratic crisis unprecedented in the Fifth Republic,” Moscovici said. He also emphasized that the new budget project, to be presented on Monday, “cannot be different” from the project presented by the former prime minister.

The draft budget of Sebastien Lecornu, who resigned on Monday, has already been analyzed by the High Council of Public Finances and should be the starting point, Moscovici emphasized.

He pointed out that the budget plan presented by Lecornu assumed a deficit of 4.7%. in 2026, while now a deficit of 5% is being considered, which would mean a higher debt of EUR 6-9 billion. This would make the deficit even “tighter.”

“The debt burden has reached 70 billion (euros), while in 2021 it was 25 billion. We are approaching a snowball effect,” Moscovici warned.

He recalled earlier that according to the budget adoption schedule, the project should be presented on Monday at the meeting of the Council of Ministers. This means that a new prime minister should be appointed by then.

The leaders of French political parties met on Friday afternoon with President Emmanuel Macron, who is expected to appoint a new head of government by the end of the day.

CNN points out that France's debt in the EU is smaller only than that of Greece and Italy, and that in Europe it is France that spends the most in relation to what it produces. State spending on social protection amounts to 23.3 percent. GDP and is in second place in Europe after Finland.

According to OECD data, France is one of the most indebted countries in the world (116.5% of GDP in 2023), and its government bonds are now considered riskier investments than the debt securities of Greece, Italy, Portugal and Spain – reminds CNN. (PAP)

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