Why qualify you disingenuous the draft budget for 2008
Because the growth forecast on which it is based 2 to 2.5 does not match the reality of economic activity. It does not account for the consequences of the financial crisis this summer, the pressure on interest rates, the strength of the euro, the recovery of oil prices. It neglects the specific difficulties of the French economy which the Government is unable to answer: the amount of the expected trade deficit in 2008 is EUR 35 billion, compared to 31 billion this year. It reflects concern degradation of the competitiveness of enterprises.
In such a context, can fear that the deficit of the State is nearest, in 2008, 50 billion euros of 41.7 billion announced. Therefore, a strict plan seems inevitable. The Government knows and referred the admission in the wake of municipal elections.
What type of budget you have presented
The France is currently the only country in Europe not to present a deficit in net decline compared to the previous year, it is irresponsible. The debt is to return the burden of repayment onto future generations, to grant to the costly tax benefits annuitants and prefer pay interest rather than fund the essential public services. That is why the debt is a necessity in the name of fairness.
We, us, reduced the deficit by dedicating half of the revenue that Nicolas Sarkozy has many felt it necessary to deprive with the fiscal package, namely EUR 7.5 billion. The other half would have served to strengthen the competitiveness of businesses by a decrease in the tax on reinvested, the reform of the research tax credit and specific SME assistance devices. It now has the country, is a productive offer inadequate globalization: that is the question that must be addressed as a priority. By choosing to grant tax breaks to the highest income, Nicolas Sarkozy has not created a shock of confidence, but a shock of inconsistency which public finances are the first victims.
You, man of the left, reproach the Government to make a recovery of the application!
I blame him not to make any stimulus at all. The stimulus package will have impact or on consumption or investment, and the exemptions on overtime would have, in a context of weak growth, limited impact on the remuneration of labour. There is therefore neither demand nor supply policy support. And waiting for the French on the purchasing power will inevitably frustrated by the cascade of levies which will fall on them: there are already medical franchises; the increase of VAT and the DRES will follow to fill holes and outstanding social debt.
You had advocated a CSG retirement during the campaign...
I had spoken of the need to find new resources to finance social protection and I preferred to be with a collection just as with a succession of that antisocial also inoperative taxes. What does no exempts to essential structures in health care and pension reforms.
You have recently required "the truth of the accounts. How will you do
The Socialist Party makes public the France audit every six months. The opposition must make a double: an effort of understanding of the reality of the French economy in the globalization and an effort of truth about the State of the public accounts and available margins of manoeuvres.
One would think hear Raymond Barre!
Peace to his soul. I think simply that rigor in management is the best way to avoid a strict plan. For one, the Government inevitably prepares us to the other.