6 point of GDP that dispute Bercy in reply

Philippe Séguin was more there, yesterday, to present the annual report of the Court of Auditors. But the contents of the 2010 edition was still marked paw (it had supervised closely) and hot news on the debt of the States made all the more solemn call to action massive and rapid recovery of public finances that it would have liked to hear him utter. Of course, the France is not the Greece. Or the Spain. But, for the high financial jurisdiction, there is now urgent to act because "the debt is packaged" and may approach 100 of GDP in 2013. The burden of interest "could reach almost 10 of the proceeds of mandatory levies on the horizon 2013" be 90 billion euros (3.500 euros per person employed), "equivalent to the product of the CSG. Beyond this threshold of 10, "there is a risk, certainly not automatic, degradation of the sovereign debt rating", wrote the Court.

This scenario occurs if the growth envisaged by the Government was not an appointment or public expenditure continued to grow by more than 2 per year. In this regard the Court welcomed, yesterday, the commitments made by Nicolas Sarkozy at the Conference on the deficit, which is held after the drafting of the report (public expenditure reduced to 0,6 per annum, including progression): "This course goes in the right direction," commented Alain Pichon, Dean of the Presidents of the Chamber, which provides the service of acting first President.

The High Court has many points of disagreement with the Government. It considers that the structural deficit (excluding the effect of conditions) exceed 4 of GDP, with 7.9 in 2009, his "drift" is being continued last year, from about 0.6 point of GDP, that dispute Bercy in reply.

"Bad pupil."

The crisis explains the best half of the deficit, insists the Court, that "the growth of public spending and tax cuts have been excessive in 2009, without taking into account the stimulus measures". Rule to identify the creations of tax niches by the reduction of other devices has been breached, declining the VAT in the restoration (this is also the subject of discussions with the Executive). And the profitability of the large loan happen in the long term: in the meantime, "this will result in additional interest expenses, which préemptera a share of the savings on expenses ...". "and that could affect the already weakened credibility of French public finances relief commitments." In Europe, "we're part of the poor students of the class" debt, said Alain Pichon.

If the Court of Auditors approved hardening considered the rules of evolution of spending (Medicare, community, State), it does little to the feasibility of the establishment of a maximum deficit, for technical reasons (definition of the structural deficit) and policies (risk of circumvention). "Implementing structural reforms is even more important," she says. This means a much more ambitious reform of the State, which would in particular on the scope of intervention expenditures. This means a pension reform which "can no longer be deferred". Finally, "the size of deficits makes hardly avoidable an increase in public resources." The Court recommends that "greatly reduced the cost of the tax expenditure" by "decreasing systematically ceilings applied to cuts and tax credits", when the Government considered that a reduction of EUR 2 billion per year of fiscal and social niches. It also advocates an increase in social security payments to finance the social debt.

The Court gives an appointment for its next thematic report on public finances, in June. In the meantime, the Government will be fulfilled, or not, his promises to reform.

The report of the Court of Auditors on lesechos.fr/documentslesechos.fr/documents