French Debt Levels Back in Focus as New Government Gets to Work

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France's top ministers affirmed the country's pledge to lower debt after the Covid-19 epidemic forced the president to carry out an unprecedented spending spree.

Gabriel Attal, France's new budget minister, said in a speech Saturday in Paris that he would be a relentless craftsman in keeping the public accounts in a difficult situation. France must stay on the path of debt lowering because it iscrucial for the solidity of our economy, the confidence in our country and the future of our young generations.

In his first year in office, he sought to use technical rigor to cut back on the economy's reliance on borrowing. He changed course and embraced the approach of whatever it cost. The ministers of his new government will be trying to rein in public spending while also trying to limit the impact of the cost-of-living crisis.

The issue of purchasing power was a key topic during the presidential campaign and is expected to be a key issue in legislative elections next month. The previous government of the president had pledged 25 billion euros for measures this year. As the European Central Bank raises interest rates, the cost of new debt will go up.

Energy Prices

Attal, who previously served as government spokesman, said during Saturday's ceremony that he would fight for every euro in the wallet of French people.

Bruno Le Maire, confirmed in his role on Friday, spoke at the same ceremony and stressed that keeping public accounts under control will be one of his main priorities.

The new cabinet has old names in key jobs.

Le Maire promised to protect against the spike in prices while respecting his commitment to reduce the deficit. He will be meeting with France's main economic players, including the business federation Medef, to see if there is room to increase salaries and contain price increases.

Le Maire said that everyone must participate in the fight against inflation.

The finance ministry has already prepared a revised budget with an array of measures to cover promises made by the president during his re-election campaign. After the second round of legislative elections, it will be presented to parliament.

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