Minus 50 billion euros

Paris Court of Auditors calls for drastic austerity measures

The President of the French Court of Auditors, Pierre Moscovici, presented the annual report.

(Bild: AFP)

France's Court of Auditors has called for drastic austerity measures in view of the country's high level of debt. Despite warnings, the government has relied on overly rosy growth forecasts, the Court of Auditors announced in its annual report on Tuesday in Paris.

If the government deficit is to be pushed back below the EU limit of three percent by 2027 as planned, a further 50 billion euros would have to be saved in the budget by then. France remains one of the worst performers in the eurozone with a public debt level of 110 percent of gross domestic product, as in the previous year. In addition to spending cuts, ambitious reforms in key sectors are necessary in order to get government spending under control in the long term.

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"Austerity measures that are unprecedented in recent history are necessary," said Court of Auditors President Pierre Moscovici to the business newspaper "Les Échos" on Tuesday. Social benefits and local authorities could not be exempt from this. "Our situation contrasts not only with traditionally frugal countries such as Germany, the Netherlands and Austria, but also with Portugal, whose public debt is now below 100 percent of gross domestic product," explained Moscovici.

"The challenge is to achieve massive savings without damaging growth," said Moscovici. Investments in the future, for example in research, ecology and social cohesion, must remain possible. "It's not about cutting investment, but about being able to finance it. In order to invest in ecology, innovation or education, we absolutely must reduce debt," said the former EU Commissioner for Economic and Financial Affairs.