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Who will pay the debt?

“A loan compromises you and you have to pay it back. Check your repayment capacity.” You must have read this legal notice when you have obtained a mortgage, car or consumer loan from your banker. Mandatory by the legislator from the consumer credit law of July 1, 2010, this mention aims to raise awareness about the risk that a loan represents for the finances of a home.

Obviously, the State does not apply these precautions of the so-called “good father”. In perpetual deficit, the nation’s budget can no longer generate the necessary surplus to pay the debt. Therefore, successive governments borrow more and more. “In 2020, France borrowed one billion euros a day,” Agnès Verdier-Molinié, director of the Ifrap foundation, recently quantified, visiting Toulouse at the invitation of Medef.

French debt will expect € 2.8 billion in 2021. Each year, the debt burden costs € 30 billion, which is almost as much as corporate tax revenue (€ 36.3 billion in 2020). Paradoxically, this peso is decreasing due to the sharp drop in interest rates. France is currently in debt between 0% and 0.1% or even below 0%. Whatever its cost, this debt will have to be repaid. By whom? If the Minister of Economy, Bruno Le Maire, has promised not to raise taxes, the debate will resurface… after the presidential elections.

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