The report on public spending was released yesterday by the Court of Auditors.
It announced a forecast of up to 3.2% public deficit for the year 2017, whereas the previous government had planned for 2.8%, a target communicated to the European Commission.
For the past few weeks, there had been a lot of speculation about the public deficit figure for 2017: 3%, 3.1%, and even 3.2%.
The new government wanted clarity and entrusted a “audit” to the financial magistracy.
Alarmist, the Court of Auditors calls on the government to take “strong corrective measures” if it intends to keep its European commitment to return to a 3% public deficit.
This means finding 4 to 5 billion euros by the end of the year or 8 billion if the executive wants to reach the 2.8% planned by the previous administration.
The annual public deficit figure could challenge some objectives of Macron’s five-year term. “If we do nothing by the end of the year, we will not meet our European commitments,” commented the PM.
The bill could rise to 8 billion.
To achieve the 3% maximum public deficit set by the European Commission, public entities will have to accept serious budgetary concessions.
The Minister of Economy announces a reduction in public spending for everyone.
Bruno Le Maire did not hesitate to state: “We are not going to trim the budget of one ministry or another. […] The State, local authorities, social expenditures, everyone needs to make an effort so that, in the end, we can regain our freedom and meet our European commitments.”
