Saturday, October 3, 2009

Bercy sees the debt burden increased from 4 billion per year

The French government believes that the burden of debt, which represents the amount of interest the debt will increase by about four billion euros annually in the coming years, "said Budget Minister Eric Woerth. The debt burden is estimated at 42.5 billion euros in the draft 2010 budget presented Wednesday to a national debt that will reach 1.654 billion or 84% of GDP. The government expects public debt will reach then 88% of GDP in 2011, 90% in 2012 and 91% in 2013, compared to an estimated ratio to 77.1% in 2009. "We believe that in the coming years, the interest burden of debt will grow to nearly four billion per year, so he'll have to do face," Eric Woerth said on France Inter.

Despite the increase in debt in 2009 was reserved in his "good surprises" regarding the debt burden because of low inflation and interest rates low. "We believe that when the recovery comes, interest rates budge (...) It was anticipated more inflation in the 2010 budget in 2009 so it plays on the weight of debt," he said . He argued however that the debt of France was now lower than the average for countries of the Organization for Economic Cooperation and Development (OECD) and countries of the European Union. Eric Woerth also reiterated his opposition to higher taxes in France to reduce the deficit abyss of public accounts. "The solution of France does not always raise taxes, but also to reform our country, more activities, more growth, to have more revenue," he said.

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