At the end of the legislative campaign, the battle between the Presidential Union and the New Ecologic and Social People’s Union (Nupes) continues on economic programs, especially on budget issues, and stimulates debate. Macroney hasn’t stopped wielding the red rag on the far left of power lately. Jean-Luc Melenchon’s “Garrick Chavez” in Matignon, France, has fallen into an irreparable “bankruptcy” and government members have been singing in a loop since Sunday. The head of state himself told the French on Tuesday that he would “give him a firm majority” in the name of “higher interest of the state” from the Orly airport parking lot where he was flying to Romania and Moldova. Prompted.
Condemning the “Trump Sketch”, yesterday Nupes leaders responded to the government’s economic attack on Nupes by announcing that “Chaos is him.” “We don’t hesitate to challenge Emmanuel Macron with his hidden budget. He criticizes us for spending a lot of money, but he has a country deficit of 3%, or 800. I promised Europe to reduce it to 100 million euros, “he says. explained. Tell me how he’s trying to do it! “Also, on Monday, Jean-Luc Melenchon added:” I will answer on their behalf (…) I can’t remove such an amount, so I need to increase my receipts. There is, therefore, raising VAT. “
“I want to deny this delirium of the adversary with maximum resilience. We have no intention of raising the value-added tax rate,” Economic Minister Bruno Le Mer responded again. For several days, the government said there were no hidden programs and nothing was said. And if the goal is to reduce the deficit to 3% by 2027, this would be without an increase in VAT. On the contrary, Emmanuel Macron’s program will offer about 15 billion new tax cuts over five years, and these levy reductions will be largely funded by savings. But when inflation is at its highest and economic growth is slowing, there are few substantiated explanations.
The pessimistic economic situation urged an exceptional meeting on Wednesday, a week after the European Central Bank announced its intention to start raising key interest rates in July to combat inflation. Of course, this major change in monetary policy carries risks, and the fragmentation of the eurozone sovereign debt market will cause European countries to borrow at very diverse levels and punish those considered more vulnerable. Will be. .. The reaction of the market also appeared immediately. Interest rates on government bonds continue to rise, with France’s 10-year yield above 2%, a level not seen since 2014, and Italy’s yield rising to 4%.
After years of negative interest rates, the situation reminds us that while inflation is putting a heavy burden on the budget, France’s public debt, which now stands at € 2,813.1 billion, will once again be costly. Let me.
–Philippe Dessertine, Director, Institute for Advanced Finance
-Christoph Barbier, Political Columnist, Editor-in-Chief- “Frans-Tireurs”
-Business journalist Sophie Fay-Columnist, Robs-“French Inter”
-Columnist Fanny Guinochet-Economic and social issues specialists “France Info” and “La Tribune”