Senators must now adopt the draft budget law for 2006. While the National Assembly, half of the elected UDF had voted against, the centrists of the Senate majority should refrain. While showing critical on this text, Jean Arthuis (UDF), President of the Senate Finance Committee tells the "voices" that he would vote in the 2006 budget.
Michel Pébereau, Chairman of the Board of Directors of BNP Paribas, tomorrow presents his report on the public debt. To reduce it, he proposes to eliminate the deficit in five years. That you think it feasible
It is very ambitious. The duration of five years is a little short to me, because 45 of the expenses of the State are based on the salaries and pensions of officials. However, if crucial decisions were made on the size of the public service, the effect is not immediate. In addition, the burden of debt, despite historically low rate interest, represents 15. Finally, the deficit alone reached 18 of the expenditure. Reduce to zero the progression of value spending is a possibility, provided that all go to the moulinette.
What other track could be followed
Should be education. In addition to negotiable debt, approaching 1,200 billion euros, I think that should be taken into consideration the pensions of officials and those of the specific arrangements of the SNCF, RATP and post. It must be said to the French in backing the retirement age, the Government could reduce the weight of the commitments resulting from these schemes. The 2006 budget confirms that the France living above its means as stated by the Minister of finance. It was decided to eliminate the tax niches, but at the same time recognized a huge exception for the DOM - TOM. It proclaims that the budget is sincere, but it perpetuates practices of undervaluation of certain expenses.
Can the France keep its commitment to reduce its deficit to 3 in 2005, then below in 2006
I doubt it! The budget class, including the discussion starts in the Senate next week, committed new loans in 2005 which will be deferred on 2006. At the train, I don't know how the Government will take until spring 2007. This is the reason why I wish that one stops resolutely to make tax cuts and deductions which lead the upcoming revenue.
In the budget debate that ends in the Senate, were do you not heard on the ISF...
The problem of the ISF has been solved with the introduction of the tax shield. The subject had vampirisé the discussions in the last three bills to finance, to guard against this year. So, I am still convinced that it remains an anomaly.
Some UDF deputies voted against the budget in November. That will be in the Senate in the solemn vote this afternoon
The vast majority of the centrist group should refrain. For my part, I will vote this budget because I recognize myself in the majority, while feeling completely comfortable to express criticism. The discussion brought satisfaction on several topics, beginning with the professional tax, which we visited reform less sharp and less arbitrary. Tax reform, including the new scale of the income tax, goes in the right direction, the competitiveness and attractiveness of the territory.