The national debt passes the threshold of 1.5 trillion
Posted by admin | Under economy, features, life, news, special Wednesday Jun 30, 2010Public debt has continued to become heavy in the first quarter. It was late March, to 1.5355 trillion euros, representing 80.3% of gross domestic product (GDP), against approximately 78% in late 2009, according to Insee. This represents an increase of 46.5 billion compared to December.
The government debt and social security have contributed to this increase, details the National Institute of Statistics. "The contribution of the State debt rose by 43.4 billion
in the first quarter, it is essential for its long-term marketable debt, "said INSEE. Clearly, these are the bonds issued to finance the state debt have widened.
The debt of Social Security, it has increased by 8.6 billion.In contrast, "local government is désendettent (- 2.8 billion) at a rate comparable to the first quarters of previous years," notes the INSEE.
The fault in the recovery plan
Bercy said in a statement that "increasing the debt on the recent past is linked to political recovery after the crisis." The government now wants to reverse the trend. The government should submit a detailed savings plan of 10 billion euros at the Council of Ministers on Wednesday.
François Fillon had lifted one end of the sail June 12 in terms of deficit reduction. It is to find 100 billion in savings over three years to reduce the deficit to 3% of GDP, against 7.5% in 2009. But the VAT increase to 5.5% on food, mentioned by the Minister of Budget Sunday, seems to have been abandoned.