The Institut Montaigne warns that current budget efforts are just a preview of the sacrifices needed to cut France's deficit by 140 billion euros by 2029. According to this liberal think tank, public spending is set to outpace revenues, worsening the deficit due to incompressible costs. This alarmist note, released on November 26, lays the groundwork for unpopular measures ahead.
Debate over austerity dominates French politics, with sharp criticism from unions. The CGT condemns 'the government's austerity budget,' while Force ouvrière warns of 'a deluge of austerity threatening workers.' The Attac association declares that 'austerity is not inevitable.' Yet, the Institut Montaigne, a liberal think tank funded by over 150 major companies, released a note on November 26 claiming these current disputes pale in comparison to future challenges.
In its unprecedented quantified analysis, the institute compares projected public revenues by 2029 with expected expenditures under unchanged policies. The findings indicate that spending will rise faster than revenues, deepening the deficit. Key drivers include rising debt interest payments, France's EU contribution, and the military budget, described as incompressible costs.
To meet its commitments, France must slash its deficit by 140 billion euros by 2029. In an alarmist tone, the institute posits that true sacrifices will follow the 2026 budget, making current measures seem minor. This publication appears aimed at paving the way for unpopular reforms, both in the ongoing budget and subsequent ones.