“It is not serious to say that we will not repay the debt”, recalls Pierre Moscovici

The President of the Court of Auditors recalled Thursday morning that, if for the time being the State is able to finance the debt, it will not be able to escape its repayment.

After November 18, Pierre Moscovici, its president, returned this Thursday morning to the public debt. For the moment, the State manages to finance it, but there is no question of canceling the debt, it will be necessary in fine reimburse her, he hammered.

, Pierre Moscovici wanted to be reassuring: “ today is around 120% of GDP, we can finance it“, and that “because the interest rates are negative.“However, this situation will not be able to last forever:” d10, 15 years old, how do you do it? At some point, we will have interest rates that will rise, again a little inflation …He anticipated. The former minister recalled that “the French (…) are happy to have public spending that accompanies this painful situation, but they also know that it is their money. And it’s their children who will pay tomorrow

In response to statements from debt cancellation as a solution, the President of the Court of Auditors was clear: “on can not guarantee that the public debt is canceled. It is not serious to say that we will not reimburse her.“And this because the European Central Bank does not have a mandate allowing it”Buy out all the debt, absorb all the debt, write off all the debt“. Of course, mechanisms exist to facilitate its management: “on can extend it, manage it well, share it in part, which is what the European Union does.“But insisted:”In the end, we always pay off the debt».

Guidelines for improving the governance of public finances

Regarding the report of the financial body criticizing the governance of public spending, its president detailed his “three watchwords“For its improvement:”we need three-year public finance programming laws (…) that are more restrictive and restrictive than today», In a logic of predictability.

Furthermore, he argued that “we are a country where there are 95,000 public operators, against 15,000 in Germany (…) which creates a very strong fragmentation“. The President of the Court of Auditors wishes “to regroup“, In order to “readability. ” Finally, Pierre Moscovici insisted on “public policy evaluation” strengthen. If he remained unclear on debt management in the near future, the former minister hammered: “what matters is the quality of public spending and debt sustainability.»