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Press REGISTER

Reducing debt, whatever it takes ?

Session 32 Amphi 2 July 6, 2024 16:00 - 17:00

Overview

Over the past twenty years, public debt levels have risen sharply in many countries, notably France. This is the result not only of successive crises, but also of historically low interest rates, which have led some countries to underestimate the effects of a lax budgetary policy that is now constraining their ability to act and regulate.

Does this mean that the priority for these countries should be to reduce their debt? In fact, the level of indebtedness is not a good indicator of sustainability; rather, it is a function of the forecast medium-term trajectory. It therefore depends on budget balances, economic growth and future interest rates. Thus, in the reasonable scenario of continued mediocre growth and higher interest rates than before the crises, debt stabilization would require remaining close to a balanced budget. What budgetary restrictions would be needed to achieve this? Who should bear the cost? How can we make the necessary investments to meet the new challenges we face? Under these conditions, can Europe be a way out, or will it be an additional constraint?


Speakers

Gérard BEKERMAN
President
-
AFER
Bio
Sarah CARLSON
Vice Presidente Senior
-
Moody's
Bio
Eric CHENUT
President
-
Mutualité Française
Bio
Wassim MANSSOURI
Acting Governor
-
Banque du Liban
Bio
Jakob VON WEIZSÄCKER
Minister
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Ministre des Finances et des Sciences, Sarre, Allemagne
Bio

Coordinator

Jean Paul POLLIN
Member
-
Le Cercle des économistes
Bio

Moderator

Isabelle GOUNIN-LEVY
Journalist
-
LCI
Bio