The debt of France weighed 1.428 billion euros in late June, according to figures provided Wednesday by the INSEE. It has therefore increased over 61 billion euiros in three months, and now represents "approximately" 73.9% of GDP, says the National Institute of Statistics. The deficit is expected to reach 77.9% in late 2009, according to forecasts used by the government to form the basis of the draft budget presented Wednesday. He expects a deficit of 84% in late 2010.
This increase in debt seems inevitable, given the implementation of recovery plans needed to support economic activity in the crisis. Economists are however divided on the sustainability of this level of debt. Some, including Marc Fiorentino, president of Euroland Finance, consider that the threshold is already reached. Others, like Eric Heyer, deputy director of the department Analysis and Forecast of the OFCE, believe that France will not be crippled by debt as investors maintain their confidence in the French Treasury
This increase in debt seems inevitable, given the implementation of recovery plans needed to support economic activity in the crisis. Economists are however divided on the sustainability of this level of debt. Some, including Marc Fiorentino, president of Euroland Finance, consider that the threshold is already reached. Others, like Eric Heyer, deputy director of the department Analysis and Forecast of the OFCE, believe that France will not be crippled by debt as investors maintain their confidence in the French Treasury
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