Public debt stabilized in the third quarter at just over 3,000 billion euros, at 111.7% of GDP, INSEE said on Friday December 22.
In the third quarter between July and September 2023, French public debt reached 3,088.2 billion euros, an increase of 41.3 billion euros, the National Institute of Statistics (Insee) announced on Friday December 22. As in the previous quarter, it stabilized at 111.7% of gross domestic product (GDP). An increase in debt, in absolute value, caused by the increase in State debt (+45.3 billion euros). The INSEE report details that the debt of various central administration bodies fell by 1.3 billion euros. Like that of local authorities, of 1.1 billion euros; and that of social security administrations, 1.6 billion. “We must better control our public finances,” assured Thomas Cazenave, Minister Delegate in charge of Public Accounts, on franceinfo Friday December 22.
A relaxation of European budgetary rules
The European Stability Pact requires countries to keep deficits below 3% of GDP and public debt below 60% of GDP. After a break in these rules, to emerge from the Covid crisis then because of the war in Ukraine, they will be reinstated in 2024. The finance ministers of the European Union agreed, Wednesday December 20, on a relaxation of European budgetary rules. It provides for the recovery of public finances without compromising investments in favor of the ecological transition.