Source link : https://bq3anews.com/the-french-financial-system-has-a-boomer-drawback-and-is-spending-method-an-excessive-amount-of-on-pensions/
Sooner than resigning from his nine-month stint as French high minister, François Bayrou had claimed that if France failed to chop its public deficit, younger folks would pay the fee “for the sake of the comfort of boomers”.
This blunt evaluate lower to the center of France’s present financial truth. For at the back of the rustic’s rising finances deficit lies a tale of generational unfairness. And people who created the issue are not going to pay for its answer.
The crux of that drawback is that for many years now, the French govt has spent a lot more than it earns. These days, it’s borrowing round 6% of GDP a yr. Over the years, those borrowings have added up, so general public debt now stands at €3.3 trillion (£2.8 trillion), an identical to 114% of GDP.
Against this, the United Kingdom’s public debt is round 101% of GDP, and the EU reasonable is 81%. (There are excessive circumstances like Japan, the place the determine is 250%.)
As Bayrou made transparent, the French deficit is really a boomer drawback, because it has subsidised privileges for an excessively fortunate technology. Other people born within the Nineteen Fifties in most cases paid only a small share in their salaries to finance beneficiant pensions, and voted to decrease the pension age.
Spending on public pensions now makes up 1 / 4 of France’s finances, with the common cost round €1,500 monthly (£1,300, in comparison to round £1,000 in the United Kingdom). However 1.7% of French…
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Author : bq3anews
Publish date : 2025-09-11 19:53:00
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