You have started the preparation of the 2010 budget. What are the main principles and priorities
The priorities listed in the Act of multi-annual programming do not disappear with the crisis. As last year, we will make great efforts for the funding of University and research. The prison administration is also preferred. The Department of Justice will be the only to see his employment increase, because we will continue to build prisons. The military planning law will also apply, as we we were engaged.
The crisis does not corrections from the 2009-2011 programming law
We will be taken to strengthen the capacity of the budget for employment, which will be a high priority for the 2010 budget. In 2007 and 2008, the economy was better, unemployment decreased and volumes of public credits had accordingly decreased. In 2009, we increased allocations in collective budget of EUR 1.3 billion to, inter alia, to fund measures for employment young people, and the number of assisted contracts was brought from 230,000 to 330,000. The next year, I discussed with Christine Lagarde, we will at least as much. And supported by the State up to 90, the job budget will be increased again. Aid for housing, the specific solidarity allowance and other benefits cost also more expensive. We will not savings in this area.
Keep however the objective of stabilization of expenditures of the State in volume
Control of public expenditure, even in times of crisis, is an absolute priority. Spending evolve not faster than inflation, excluding expenses of crisis. At this point, we expect a rise in the price of 1.4 in 2010. We want to reduce the budget deficit next year. The Act of programming was not a theoretical exercise: the evolution of the appropriations for the departments having been set in advance, I discussed with much fewer Ministers, only when specific problems arise.
The principle of the replacement of a staff member on two apply to Education
National Education, like the others, must continue the efforts that the State might be able to delete 34,000 positions of civil servants next year. But we do not book vision and the rule of the "1 2" adapt to the constraints of each. Enrolment in higher education and research will be stable. Conversely, the Department budget, 58 of departures only will not replaced.
The rule applies to some 600 operators of the State (national museums, universities, CROUS, etc.)
Operators, employing nearly 266.000 agents, will have to apply the rules that the State is necessary in itself, but we will do, here again, the case by case basis. The pace of real estate transfers will also be equivalent to the departments. We are already a dozen audits to identify sources of potential savings.
Stimulus spending consistent with forecasts and how will they evolve next year
The out of the crisis is announcing progressive, he will be spending of stimulus in 2010. With the social investment fund this year, we are not going to stop of the day to the next. For 2009, the pace of implementation of the recovery plan is good. For example, measurement of pre-payment of the FCTVA for local communities is a success and will represent around EUR 4 billion, or slightly more than 2.5 billion projected. This is totally in the spirit of the stimulus package, since this say that communities will invest heavily this year.
Tax cuts (VAT recovery, business tax) will be offset
It has of course samples which must be reformed, but need to secure government revenues. Must be non-stop, as the Prime Minister has said, reconsider the whole of fiscal and social niches by looking at their socio-economic contributions. We have already made reforms the previous years and we will continue. We are guided by two principles: economic efficiency and social equity. The rest, multi-annual programming Act sought to put an end to the profusion of tax expenditures.
The growth forecast is reviewed at 3. How will evolve the deficits
We will revise the forecast in June, the public finance policy debate. Tax revenue, in particular the tax on corporations, are obviously not good. They could settle in the levels of 2002 or 2003. We will revise the deficit of the social security accounts Committee, on 15 June. If the payroll decreased by 1, instead of stable, this would represent revenue EUR 2 billion less.
How narrow is deficits without increasing taxes
We need to act on public spending in a much stronger way. They were in the past by 2 per year and today we strive to contain 1 per year. I would like that after 2010, they can monitor a limited to inflation or as close as possible to the "zero volume", whereas the expenditure of the State today follow this discipline. If we could manage it, this would be 10 billion euros of additional savings per year, and with growth found a rate of 2 per year, would reduce the public deficit to a point of GDP each year, once the crisis passed.
How to limit the progression of social spending
I note first that for 2009 Medicare spending should be consistent with the goal voted by the Parliament (Ondam), what has happened only once, in 1997. Therefore, there is no procedure to alert. This does not mean that we do not take ad hoc interim measures in the coming weeks, to reinforce the strict observance of the BASI. We intend to continue structural reforms in the 2010 social security budget. It is not question to an act of financing for nothing, on the pretext that it is the crisis. I will make proposals by the summer, by opening the unavoidable debate for financial soundness, fairness and effectiveness of our health care system.
How will you finance the social security debt
In 2009, we will first have to raise the ceiling of cash from the Central Agency for social security organizations (Acoss). For the resumption of debt, some trails are closed, as the increase of the DRES. We must therefore explore other solutions. There is a crisis for the State debt, there is also a crisis for social finance debt, both require a coherent approach.