IMF: FRANCE MUST REDUCE DEBT. Macron the new Monti?

France is about to have its share of “Hardness of Life”, and maybe Macron will have to give it to them. The International Monetary Fund has called on France to prepare a plan to consolidate public finances and as soon as the economy has overcome the Covid-19 crisis,

In its annual report on the French economy, the IMF believes it expects a rebound of 5.5% in the gross domestic product (GDP) of the eurozone's second economy, after a contraction of around 9% in 2020. medium-term growth is expected to remain below the pre-crisis level, as the hexagon economy outperformed several other euro area countries, due to very high unemployment and a progressive deterioration of the financial situation of private companies.

While the crisis is expected to leave the public sector budget deficit at 7.7% of GDP this year, the IMF urges the government not to waste time and develop plans to cut spending once the economic recovery takes hold. avoid further growth in public debt.

Unlike Italy, France has negative current account balances, similar to those of Italy “Pre era Monti”, which however are gradually accumulating;

Here is the situation of the Italian current account balance

Looking ahead, France therefore finds itself in an even worse situation than Italy. In the pre-election period we can expect a Macron in Mario Monti version, in search of painful cuts and tax increases to reduce deficit and debt. Recall that the plan for the use of the French RRF is based instead on significant tax cuts to companies to obtain a revival of the economy.

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The IMF article : FRANCE MUST REDUCE DEBT. Macron the new Monti? comes from .

This is a machine translation of a post published on Scenari Economici at the URL on Mon, 25 Jan 2021 18:30:15 +0000.