French Court of Auditors warns of economic crisis

The Court of Auditors (Court of Audit – in French) from France released a report on this 215th fair (July 15, 2024) warning about a possible economic crisis in the country. According to the institution, the situation of public finances is “worrying”, as is that of debts with European Union countries.

The French budget deficit reached €154 billion, equivalent to 5.5% of 2023 GDP. This amount is 0.6% higher than that promised by the Minister of Economy and Finance, Bruno Le Maire. Here is the full report (PDF – 3 MB).

According to the entity, the public debt, as it is, “dangerously exposes [a França] in the event of a new macroeconomic shock”. The Court also warns of low economic performance in 2023, as well as the projected difficulty in achieving the 2024 objectives.

“The Court considers it imperative to quickly give credibility to the objectives for 2024, dispelling the uncertainty surrounding the savings and tax increases they imply.”said the text.

The Court of Auditors also considers the relationship between the country’s economy and ecological agendas, such as the 2030 agenda. According to the institution, the 2024 electoral period also contributed to changes in economic forecasts.

A Court of Audit It is the supreme audit institution responsible for verifying the use of public funds and sanctioning their misuse. The Tribunal and the Regional and Territorial Audit Chambers (CRTC) also constitute France’s financial courts.