8 9 offset adverse to businesses and consumers

Public finance, Governments who are over 25 years lived on credit, putting the burden on future generations. The three following points unfortunately clearly indicate.

(1) The total public debt was multiplied by five to 1140 billion EUR in 2005 (or 66.5 of GDP, compared with 35 in 1990), because this policy continues of the State to live beyond its means.

(2) On this very high debt adds weight of the public expenditure in France, among the highest in Europe (more social compulsory levies): 53.9 of the GDP, which places the France to the 2nd rank of the countries of the Union to 15, even the average European is 44.8, 9 offset adverse to businesses and consumers. All the more concern that while the vast majority of the States of Northern Europe has greatly reduced this proportion (from 6 to 12 of GDP according to the States) the France did not follow this trend. The weight of its public expenditure is substantially the same as in 1995.

(3) Finally, with a public deficit of 2.9 of GDP, the France remains above the average European (2.3) and the eurozone (2.4). Clearly, for fifteen years, State spending exceeded revenues by an average of 16, or 25 billion euros which will annually increase the debt of our country.

The cumulative effect of these three factors is even more serious that it gives more no room for manoeuvre to deal with cyclical shocks (or the financing of expenditure for the future, multigenerational cohesion measures). The prospects of social schemes are concern (demographics, aging). That the continuation of the trends and bad practices would staggering public debt rates: 130 in 2020, 200 in 2030. That an increase of 1 of the interest rates generates an additional interest expense of 5 billion in 2010, approximately 10 of the income tax, which is 75 to pay only interest of the debt.

Being in a European single market globalization and intense international competition, the France site is losing its competitiveness, and companies, as a result, a capacity of investment (research and development, innovation) less than competitors because of the excess of government spending, which are unproductive nature.

It is therefore urgent to reverse this trend and halt this dangerous inclination to defer our own spending on future generations. This objective is feasible in view of the two following principles:

(1) The control of public finances should be a priority objective based primarily on the political will of rapid reduction and return to the balance within five years to stop permanently and structurally the level of indebtedness. On the basis of a budget stabilized in current euros, this represents a reduction of 16 or $ 30 billion over five years. Such a strategy should not be based on overly optimistic growth assumptions but effective reduction of expenditure, which means:

to rethink public missions (otherwise, better with less): reorganization, downsizing, reducing the number of departments and local authorities in seizing the opportunity of the large number of the retirements in the public sector (each tamarisk generates an economy of 1 million euros).

to proceed with method to succeed these structural reforms: pedagogy, clarity of speech, analysis economic comprehensive, long term vision, systematic evaluation of the reforms and the principle among all citizens to avoid the losers-winners logic.

establish a reserve fund to prevent risks in setting out the conditions of its use (from 0.1 to 0.3 of GDP).

(2) To be effective, the effort reduction and then return to the balance of public spending must be shared between the three actors (State, social plans, local authorities). A national stability pact (constitutional level) as the German example could organize the sharing of responsibilities in deficit.

Return to the balance of public finances and the reduction of the weight of public spending is an absolute political priority after twenty-five years of drift. The report on future generations not only is not acceptable but primarily posed a major threat on intergenerational cohesion: how to accept to pay our children, our grandchildren hard to imagine that they will accept it

In a context marked by globalization, more and more marked interdependence savings and greater competition among all companies in the world, the States are also in competition. This effort of public productivity is necessary and will be beneficial to growth therefore employment but also to social cohesion. The role of the State and elected representatives is not first give the example in applying themselves to a rule of righteous governance