The French Government Is Not Concerned With Its Public Debt – Here’s Why

Here are the numbers: France’ public debt has reached €2,299.8 billion, the equivalent of 99% of its GDP. This debt is composed mainly of State debt (€1,828.4 billion) and social security (€211.9 billion), local regions (€199.4 billion) and central administration organisms (CNR, CEA, the Louvre museum, Météo France etc.: €60.1 billion). Public debt keeps growing year after year since deficits – State ones being the largest – persist. But we’re stunned that the State budget keeps shrinking! For what reason? Because of zero rates, of course. Indeed, when a loan comes to maturity, the Agence France Tresor issues a loan of the same amount, but with much lower interest rates. The former loan, dating back many years, had been contracted at higher interest rates. Replacing it with a lower rate loan thus constitutes an excellent financial operation for the State! Thus, as explained by IFRAP, basing its findings on a note from Banque de France, the charge of public debt (payme...

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