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French Slash Gov’t Spending 14%, Cut Deficit

From a clearly appalled Reuters:

French deficit drops, auditor urges stronger action

By Daniel Flynn and Jean-Baptiste Vey
February 8, 2012

PARIS (Reuters) – France’s central government slashed its budget deficit last year by a third thanks to the end of one-off spending measures, the budget ministry said on Wednesday, but state auditors said much tougher austerity measures were needed to hit EU targets.

Have they gone mad?

The central government’s 2011 shortfall came in at 90.8 billion euros, 4.5 billion euros better than forecast in last year’s budget, meaning France should comfortably beat its overall state deficit target for last year of 5.7 percent of GDP.

President Nicolas Sarkozy said recently the overall public deficit — which includes social security and local authority spending — could have dipped as low as 5.3 percent of gross domestic product last year, putting France well on track to meet this year’s target of 4.5 percent.

Wednesday’s figures showed that, while revenues were flat last year, the central government was able to slash its deficit as spending tumbled by 14 percent to 365.4 billion euros.

In other words, they did not increase taxes. Or if they did, it didn’t get them any more revenue.

Spending in 2010 had been boosted by a 32 billion one-off charge for a government future investment program covering everything from industry to research and teaching, and an exceptional payment to regional governments to cover the cost of a reform to France’s local business tax.

France’s Court of Auditors — a quasi-judicial body charged with reviewing public finances — said in a report that the government last year had taken only one tenth of the measures required to keep its promise of balancing the public finances by 2016 and that much tougher steps would be needed

Just imagine if we would take just one tenth of a tenth.

The Court of Auditors estimated that France had reduced its structural deficit — excluding cyclical economic effects — to 4.5 percent of GDP in 2011, down by just 0.5 of a percentage point from the previous year

When was the last time we cut our deficit even a little?

This article was posted by Steve on Wednesday, February 8th, 2012. Comments are currently closed.

2 Responses to “French Slash Gov’t Spending 14%, Cut Deficit”

  1. GetBackJack says:

    Quel culot! Qu’est-ce connards!, the infamy!! When you’re broke and a you’re a government you’re supposed to be spending more more more!

    J’en ai ras-le-bol

  2. proreason says:

    What do the French know?

    We’re in a recovery!!!

    I heard it on TV.


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