Audit court reveals France's financial difficulties

Recently, the French Court of Audit (Cour des comptes) released a report stating that the plan formulated by the French government to repair its "worrying" financial situation lacks credibility. This assessment has sparked widespread attention and discussion on France's fiscal policy and economic prospects.

France's public debt level has reached a historical high, and the government budget deficit continues to exist. Despite a series of fiscal adjustment measures taken by the government, the problems of debt and deficit remain severe. The sluggish economic growth is also an important challenge facing France. In recent years, the slow growth rate of economic recovery has not been sufficient to significantly improve the fiscal situation.   The slow economic recovery process after the epidemic has intensified fiscal pressure.

The French Court of Audit raised multiple questions and criticisms about the government's fiscal restoration plan in its report: firstly, the plan lacks details and transparency: the Court of Audit believes that the government's fiscal restoration plan lacks sufficient details and transparency, specific measures are unclear, and there is a lack of implementation timetable and specific execution plan, which calls into question the credibility of the plan;    

The assessment of the audit court has raised concerns about France's fiscal policy and economic prospects, which may affect the credit rating of France by international rating agencies. If the rating is downgraded, it will increase France's borrowing costs and further exacerbate fiscal pressure. As an important member state of the eurozone, France's fiscal health is crucial for the stability of the entire eurozone. EU institutions may require France to adopt stricter fiscal discipline and reform measures to comply with the requirements of the Stability and Growth Pact. Opposition parties, economists, and social groups have expressed their opinions, and some interest groups have questioned the government's fiscal policies and demanded more transparency and participation.

Faced with the evaluation and criticism from the audit court, the French government stated that it will take further measures to enhance the credibility and operability of the fiscal repair plan. Firstly, the government promises to enhance the transparency of the fiscal repair plan, provide more detailed implementation plans and timelines, so that all sectors can better supervise and evaluate the implementation of the plan; Secondly, economic growth and tax expectations will be reassessed, and the fiscal repair plan will be revised based on more conservative and realistic assumptions to ensure its feasibility.