World

Emmanuel Macron NIGHTMARE: French President issued devastating economic warning

The country’s Court of Auditors has called for a “long-term” plan to control public debt, which has been tipped to reach 120.9 percent of GDP – in other words, a fifth more than all the wealth the country produces in the course of a year. Led by President Pierre Moscovici, the Court of Auditors, which has responsibility for conducting financial and legislative audits of most public institutions, highlighted the dire situation in its annual report, published today.

The document states: “The spontaneous rebalancing of public accounts will, in all likelihood, only be partial.

“Without recovery action, the deficit risks being very high for a long period.

“The debt trajectory would then not be under control.”

Government forecasts are suggesting GDP could fall by 11 percent in France this year, with the government banking on renewed growth to reduce the national debt, having pledged not to increase taxes.

The Court of Auditors has drawn up three scenarios for the recovery of activity, with the most optimistic not foreseeing a return to pre-crisis debt levels – just under 100 percent of GDP – for a decade.

The report warns against expectations in relation to economic growth, stressing that “an effort to structurally restore public finances must be undertaken” as soon as economic conditions permit.

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Speaking earlier this month, Mr Macron said: “The summer of 2020 will not be a summer like any other and we will have to keep watch over the evolution of the epidemic.”

The priority was to “rebuild a strong, ecologic, sovereign and fair economy”, he said, “drawing on all the lessons” of the pandemic.

He added: “This ordeal also revealed our flaws, our weaknesses: our dependence on other continents to obtain certain products, our cumbersome organisation, our social and territorial inequalities.”

Speaking earlier this month, Mr Macron said: “The summer of 2020 will not be a summer like any other and we will have to keep watch over the evolution of the epidemic.”

The priority was to “rebuild a strong, ecologic, sovereign and fair economy”, he said, “drawing on all the lessons” of the pandemic.

He added: “This ordeal also revealed our flaws, our weaknesses: our dependence on other continents to obtain certain products, our cumbersome organisation, our social and territorial inequalities.”

BFM TV and Agence France Presse earlier reported 7,500 looming job cuts.

Air France declined to comment on layoffs plans.

(Additional reporting by Maria Ortega)



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