In the face of the economic repercussions of the war in the Middle East, Sébastien Lecornu has asked his ministers to freeze 4 billion euros in spending. This fiscal caution measure is driven in particular by the increase in interest rates on debt.
Sébastien Lecornu requested on Tuesday that his government implement 4 billion euros in “additional spending restraint measures” due to the impact of the war in the Middle East on the French economy, in a letter addressed to his ministers.
“We will implement precautionary measures to the extent of this shock on state spending and social security administrations. As a precaution, we will have to implement 4 billion euros in additional spending restraint measures within your ministerial budgets,” wrote the Prime Minister.
Precautionary measures
Speaking on RTL on Tuesday morning, Roland Lescure, Minister of the Economy, stated that this figure is “the order of magnitude at this stage of the crisis as we can estimate it,” with a 3.6 billion euro impact on debt costs “which are increasing because interest rates have risen,” he explained.
Regarding the savings to be made, the head of Bercy assures that “we will not cancel anything, but we may need to take precautionary measures, technically called a freeze. We freeze expenses that we can then unfreeze if things improve,” detailed Roland Lescure.
Sébastien Lecornu has called for a ministerial meeting focused on energy on Tuesday afternoon and will speak at 6:00 p.m., as indicated by Matignon.
(With AFP)
