Bruno Le Maire defended his economic record before the Senate Finance Committee, attributing France’s rising public deficit of 6.1% for 2024 to the current government’s decisions. He highlighted a revenue assessment error and the impact of extensive crisis support on fiscal health. With debt levels reaching €3.230 trillion, concerns over economic forecasts persist. Current Economy Minister Antoine Armand called for collective responsibility in addressing the situation, as former government officials prepare for the 2025 budget review.
Bruno Le Maire Defends Economic Record Amidst Public Finance Scrutiny
Bruno Le Maire, the former Minister of Economy and Finance, has taken a firm stance against accusations of mismanagement concerning France’s deteriorating public finances. In a recent session before the Senate Finance Committee, Le Maire spent over two hours defending his tenure, attributing the current fiscal challenges to the actions of the present government.
Addressing the committee, he firmly rejected any claims of ‘fault’ or ‘concealment,’ emphasizing that the anticipated deficit of 6.1% for 2024 is a result of decisions made by the current administration. He stated, “If all the measures we had prepared had been implemented without delay by the new government, we could have contained the deficit to 5.5% without increasing taxes.”
Understanding the Deficit and Economic Challenges
The projected public deficit of 6.1% is a significant increase from earlier forecasts of 4.4% in autumn 2023 and 5.1% in the spring. This situation has raised concerns about France’s fiscal health, with the deficit not expected to dip below the EU’s 3% threshold until 2029. Le Maire pointed to the impacts of extensive financial support during multiple crises and a shortfall of €41.5 billion in tax revenues as primary contributors to the current fiscal conditions.
During his testimony, he highlighted a “serious technical error” in revenue assessment, asserting that there was no intent to mislead. He acknowledged the rapid deterioration of the economic landscape at the beginning of 2024, which prompted immediate actions from Bercy, including the cancellation of €10 billion in credits.
Despite these efforts, Le Maire expressed regret over his inability to convince others about the need for a rectifying finance bill in the spring. He noted that decisions regarding savings ultimately rested with President Emmanuel Macron, indicating a lack of institutional power following the dissolution of the National Assembly in June.
The committee’s general rapporteur, Jean-François Husson, criticized the government’s complacency amidst rising debt levels, which now stand at approximately €3.230 trillion, equating to 112% of GDP. The increase in the deficit has led to questions about the reliability of previous economic forecasts and revenue projections.
Current Minister of Economy, Antoine Armand, emphasized the importance of collective accountability in addressing the financial situation, suggesting a need for reduced spending rather than focusing on assigning blame. The Senate is slated to hear from former Prime Minister Gabriel Attal and his predecessor, Elisabeth Borne, as they prepare for the examination of the 2025 budget proposal.