Prime Minister Michel Barnier defends the government’s budget amid a censure motion, challenging claims that the rising public deficit is solely the current administration’s fault. He highlights that France’s debt issues have historical roots, tracing back over two decades. While Eurostat data shows France’s public debt escalating to 109.9% of GDP, Germany’s remains significantly lower at 62.9%, largely due to fiscal measures implemented after the 2008 financial crisis.
Michel Barnier Defends Government Budget Amid Censure Motion
Despite the looming threat of a motion of censure, Prime Minister Michel Barnier remains steadfast in his defense of the government’s proposed budget and financial strategies. In a recent interview with Figaro, Barnier addressed comments made by Bruno Le Maire, who claimed that the public deficit’s increase to 6.1% of GDP this year is “the choice of the current government.”
“Honestly, who can believe that a government in place for barely more than two months bears this responsibility?” Barnier stated emphatically. He also urged the political left not to attribute the deficit solely to Emmanuel Macron, emphasizing that the issue of public debt “stretches back much further.” According to Barnier, “twenty years ago, French debt was comparable to German debt.”
The Decline of French Debt Since 2008
An analysis of Eurostat data confirms Barnier’s assertion regarding the long-standing nature of France’s financial struggles. The agency provides a detailed visualization of the evolution of gross public debt in both Germany and France over recent decades, measured as a percentage of GDP. In 2003, under President Jacques Chirac and Chancellor Schröder, both nations exhibited similar debt levels, standing at 65% and 63% of GDP, respectively. Their financial paths remained closely aligned until 2007, when the financial crisis of 2008 created a significant divergence.
Fast forward to 2023, and the comparison paints a stark picture for France, with public debt soaring to 109.9% of its GDP. In contrast, Germany’s debt is considerably lower at 62.9% of GDP, which is 18 points below the EU average. This widening gap can largely be attributed to the aftermath of the 2008 financial crisis. Following the crisis, Germany implemented a reform known as the “debt brake,” which is a constitutional mechanism that limits the budget deficit to 0.35% of GDP, excluding cyclical effects.
While some in the German political sphere criticize these measures as obstacles to investment, it is important to recognize that they have successfully kept Germany’s debt in check while French debt has continued to escalate.
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