avenues for spending cuts are multiplying

The hunt for billions has been launched, since the observation of a 21 billion euro hole in revenue last year. There is urgency, before the presentation on April 17 to the Commission and our partners in the euro zone of a new five-year public finance plan (or “stability program”) taking into account the slippage.

Communities too

Proposals are flowing, official and unofficial mixed together. A new unemployment insurance reform seems settled, the unknown concerns the method (with or against the social partners) and the scale (how many billions to scratch). Likewise, a reduction in expenses for compensation for sick leave (or “daily allowances”) is almost certain, through less compensation for employees, compensated or not (this is the debate) by companies.

The government is also looking towards pension funds. He reiterates his desire to draw on the reserves of Agirc-Arrco, the supplementary pension scheme managed by the social partners. And he expects the new president of the Pension Orientation Council (COR) Gilbert Ce to establish a degraded diagnosis of the finances of the schemes, justifying a new reform.

Retirees deducted?

Let’s not forget local authorities, which account for 20% of public spending. A crucial meeting is set for Tuesday with the meeting of the brand new High Council of Local Public Finances.

The new thing is that the Prime Minister is no longer completely closing the door to an increase in revenue. The following will specify the real degree of openness. In the meantime, we should note an unusual outing from the delegated president of the CAE (Economic Analysis Council), an organization reporting to the Prime Minister, who bluntly declares: “Refusing any tax increase, given our budgetary situation, is is absurd. » Camille Landais suggests the path of “very high incomes and assets”, but also of retirees, whose standard of living in relation to active workers “is higher than among our neighbors”.

Rating alerts

Will France lose market confidence? The financial rating agency Fitch sent a negative signal this Tuesday by estimating the deficit reduction objectives “increasingly out of reach”. The agency, which had already downgraded the French rating to AA-, however says a new sanction is “unlikely” during its next rating on April 26. That day will also see the verdict of the Moody’s agency, which also deemed France’s compliance with its commitments “unlikely”. Finally, the S&P note will follow on May 31 – 10 days from European elections.