Pierre Moscovici points out that there is no same room for maneuver in Germany in France
Former Commissioner and current President of the French Court of Auditors Pierre Moscovici on the occasion of intra -European consultations to increase the defense spending of EU Member States is ringing.
In an interview with the French newspaper L ‘Express, Moscovici points out that there is no room for maneuver in Germany in France and that the fiscal effort to be dedicated to defense is essential, but the transition to a war economy cannot and should not be done.
When the euro was introduced, France and Germany had the same level of public debt, about 59% of GDP, Moscovici notes, stressing that in a quarter of a century, France has been left behind, with its public debt ranging between 110% and 115% of GDP today.
It also appears particularly concerned about the prospect of a national loan to cover defense spending, stating that anything that contributes to the increase in French public debt is a hasty flight that will eventually cost.
“It’s time to put a brake on and regain control of our public finances. Otherwise, we are in danger of paralysis and then by accident, “says the former Commissioner and minister, citing the case of Greece, which he said well. As he notes, it may be a public system to cease to be viable, stressing that in this case, it is not the austerity that causes the crisis, but the crisis that causes austerity.
Moscovici states in particular that when he went to Greece in 2012, he saw a fictitious labor market, pension spending representing more than 20% of GDP, an ineffective administration, and data on public financial falsified. Moscovici also notes that in Greece, the troika’s policy was overly violent and that he was in favor of gradual reform and motivation.
Answering the question of whether France is safe from a scenario, such as that of Greece, Moscovici replies that the cases of Greece and France are not comparable, to the extent that France is a country with a differentiated economy, the ability to innovate and a higher education system that can withstand.
“We still have the seventh highest GDP in the world. We have an excellent administration but we are going through a crisis of trust. France does not need shock or bleeding in its administration, it needs to reactivate it and significantly improve the quality of its public spending, ”Moscovici emphasizes.
In any case, he says, France will be able to convince others better if it settles its home first. As he says, “France’s credibility is one of the prerequisites for European Renaissance”, and is the only country whose public debt, which is already very high, continues to grow.
“France’s annual repayment of debt has increased from 25 billion euros in 2020 to 63 billion euros today. If this course continues, there could be a debt burden of 100 billion euros by 2029. These figures are worrying, ”Moscovici concludes.
Source: KYPE