We are hooked on public spending, French PM warns in first speech

FRANCE is “dancing on a volcano” of chronic state overspending and debt, its new prime minister warned in his first speech to parliament detailing his road map for reform.

Edouard Philippe’s technical address to the National Assembly contrasted with president Emmanuel Macron’s lofty, long-winded vision of how to revamp France at the palace of Versailles.

Outlining a raft of planned reforms, the Right-wing Mr Philippe, an amateur boxer and part-time crime writer, announced plans for tax cuts and public spending cuts. Addressing the National Assembly Mr Philippe warned that public debt now totalled €2.1trillion (£1.8trillion), nearly the equivalent of an entire year’s economic output. “We are dancing on a volcano that is rumbling ever louder,” he said.

“The French are hooked on public spending. Like all addictions it doesn’t solve any of the problems it is meant to ease. And like all addictions it requires willing and courage to break the habit.” Last week France’s independent auditor revealed a more than €8 billion funding shortfall in this year’s budget, forecasting a deficit once again above the EU cap of three per cent of national income.

Mr Philippe said that for every €100 Germany raised in taxes it spent €98, while France spent €125 for every €117 levied in taxes.

The public deficit would be brought below three per cent of GDP this year, he promised, while public spending would fall by three per cent of national income over five years, and the French tax burden cut by 1 percentage point over the next 5 years.