France facing the wall of colossal debt

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DECRYPTION – Paris runs the risk of seeing its public debt trajectory diverge from the Nordic countries and Germany, and of being penalized by investors.

France will continue to bear the burden of its abysmal debt for a very long time. François BOUCHON / Le Figaro

A final readjustment. In order to take into account the effects of the second confinement which began in early November, Bercy is preparing to update in the next few days, in its 2021 finance bill (currently under debate in Parliament), the level of debt and deficit. expected for next year but also for the end of 2020. After rates of 98.1% of GDP in March and 114.1% at the end of June, public debt should exceed 120% for the year 2020 alone. The ceiling symbolic of the 100% of public debt, which Bruno Le Maire was so worried about crossing a few months ago, has been largely pulverized. And it doesn’t seem to make anyone tremble anymore, on the contrary …

Getting into debt does not cost anything any more. Worse, it can even pay off! Despite the growing weight of the deficit (which will exceed 11% this year and will not return below 3% for a long time), the debt burden has been falling every year for the past ten years. In 2020, between the beginning and the end of the year, the

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