Budget: Accounts slip again, government tightens the screws

And the accounts are slipping again. As in previous years, alarm bells about public finances are ringing from all sides. It was the INSEE (National Institute of Statistics and Economic Studies) that opened the day on Thursday, June 26, by noting that France's public debt continues to spiral out of control . It has ballooned by €40.5 billion in three months to reach €3,345.8 billion at the end of the first quarter, or 114% of gross domestic product (GDP). This is the third highest in the eurozone after Greece and Italy, but France, still benefiting from investor confidence, is having no difficulty financing it.

Following the INSEE (National Institute of Statistics and Economic Studies), the government has taken over to raise concerns about the execution of this year's budget. However, the slippage does not appear to be on the same scale as in the previous two years. The major problem this time appears not to be lower-than-expected revenue (even though VAT, for example, is expected to bring in €2 billion less due to weak consumption, according to several sources), but rather to spending by the state, local authorities, and social security, which is increasing faster than expected.

From Bercy, where the second "public finance alert committee" was held this Thursday morning, the