French public debt slows its growth in the second quarter

In relation to GDP, the country's public debt reached 113.3%, against 114.7% at the end of the previous quarter.

French public debt, which has increased massively since the health crisis, slowed its progression in the second quarter, with an increase of 6.2 billion euros, to reach 2,916.8 billion euros, announced Friday. INSEE. The increase had been much greater in the previous three months (+88.8 billion euros). The ratio of public debt to GDP, on the other hand, fell to 113.3% at the end of the second quarter of 2022, against 114.7% at the end of the previous quarter, detailed the National Institute of Statistics.

This decline is explained by the rise in value of the gross domestic product, specifies INSEE. The increase in the gross debt of public administrations is due to that of the State debt (+16.3 billion euros) and that of local public administrations (+2.7 billion). On the other hand, social security funds and miscellaneous central government bodies reduced their contribution, by 9.3 billion and 3.5 billion respectively.

In the first category, Urssaf Caisse Nationale (formerly Acoss) and Unédic repaid debt securities, while the Social Debt Amortization Fund (Cades) is indebted for 5.6 billion euros. euros, notes INSEE. In the case of various central administration bodies, SNCF Réseau (-2.8 billion), France Competence and Bpifrance Participations are reducing their debt.

The 1992 European Treaty of Maastricht set a public debt limit for States at 60% of GDP, which France exceeded at the end of 2002, never to go below it again since then. But since the health crisis, this rule, like that of a public deficit of less than 3% of GDP, has been suspended. At the end of May, this suspension was extended until the end of 2023 due to the economic consequences of the war in Ukraine.

At the end of 2019, before the Covid-19 crisis, French public debt stood at 97.6% of GDP. During the presidential campaign, Emmanuel Macron undertook to restore the situation of public finances during his second five-year term, by bringing the public deficit below 3% of GDP by 2027, which would make it possible to begin to reduce the debt burden.

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