frslblg-0016UScomments

Far more disturbing than the CPE crisis, France's national debt is reaching an inconceivably big amount. The immediate national debt, that is, what should be paid back right away, amounts to 1,140 billions Euros (67% of the gross domestic product or GDP), which has to be increased, a European rule says, by amounts to be willy-nilly paid tomorrow like the retirement pensions of the civil servants and military currently on duty. A total of about 2,100 billions Euros. An obvious increase compared with last year's governmental statement. Thierry Breton, the current finance minister, has been so far unsuccessful in getting the fabulous debt built up by his predecessors under control. He has only managed to pay the compound interests Mind you, Thierry breton may well be reducing the public deficit down to less than 3% (2.8% projected) in 2006, so satisfying to the European Compact of Stability, but the public deficit and the public debt are different things.
France's public debt

How has such a debt built up? In various ways. By allocating privileges, sinecures and benefits, by making up for deficits, by increasing the civil servants' salaries or by starting big roadworks, constructions and redevelopments without the money needed, the government force themselves either to increase taxes or borrow money. As the tax and social security deductions have already been increased in France more than is sensible, no government venture increasing them further. They take out loans therefore.
Every French newborn baby has debts of 34,400 Euros before ever he can open his eyes.
One of the parables, by which the Father in The Revelation of Arès refers to men's impatient greed, "Man is foolish...He counts two chairs for one leg, two beds for one night (V/7)," helps us easily understand how a nation puts itself in debt to so big an amount.
How will the nation reimburse its creditors? Arlette Laguiller, an ultraleftist, would say, "Let's make the rich pay!" But the rich have considerably decreased in number. It's clear to me that everybody will sooner or later have to make great sacrifices, therefore, that is, the complete opposite of what the leftist as well rightist speeches sound to tell us.

copyright 2006