REDUCTION OF PUBLIC SPENDING

The economist Michel Godet, member of the Academy of Technologies, was one of the speakers. We publish below the main points of his speech to MEPs.

Public debt: 20% of GDP in 1980, 97% in 2015

In 1980, the public debt reached 20% of GDP, last surplus year. Today, 96% or 97% and almost 100% of GDP. The recipes are not adjusted expenses. Withdrawals are raised to justify the expense.

compulsory levies: 40.3% in 1992, 44.7% of GDP in 2015

The tax burden has particularly increased in recent years. Recall that the VAT, one and half times higher than the income tax, is equivalent to the sum of the income tax and the CSG.

Since 1980 our standard of living per capita was down compared to our neighbors

In France, the standard of living per habitant has declined since 1980: 20% above the UK, and at a level roughly equivalent to that of Germany, it is now 10% below Germany and a bit overwhelmed by the UK.

The more you work, the fewer unemployed

The wealth of a country depends on the working time and the number of assets. In Switzerland, where time spent working is 42 hours per week, the unemployment rate is 3%! The more you work, the fewer people unemployed.

The French exception: living beyond its means and work less! The French work less active (44 hours per year) and less per habitant (174 hours per year) than the German.

We are singular, but it would stop having French exceptions.

• Residents and active working less than elsewhere:

- Not enough active ants (young and old)
- Few part-time jobs
- A high long-term unemployment
- Little incentives to support Revenues

• High productivity, an exclusion indicator!

• Out with the French exceptions: stop doing what others do not.

The wealth created is ten times less than the borrowed wealth

GDP per habitant is a given: it drop since 2008 in France. In 2014, it was 0.4, but the debts of the public deficit in the same year are ten times higher: 4 points of GDP. The wealth created is ten times less than the wealth borrowed. Germany has a higher per habitant growth, positive, but meeting a demographic problem.

In terms of public spending, France is now 12 points above Germany. In 1980 the situation was reversed, Germany had 55% of public expenditure in relation to GDP. Sweden also declined. The State and local authorities have not made reforms to date, including spending.

France has strongly increased the accumulated public debt. Currently, the debt service falling. If the loan interest rate had been the same as it was five or six years, we would have 4 points
debt service to GDP in France. Germany drop its public debt through a budget surplus every year. Other countries suffer the impact of the crisis but much less than France. Sweden as Denmark have increased their debt, but not as strongly between 2008 and 2014.

Debt in France today represents EUR 150 000 per active employee. Each of our children, working, will have to repay EUR 150 000, excluding commitments by unfunded state
as civil servants' pensions.

Debt per habitant assets

• 30 000 euros per habitant
• 60 000 euros given the state of commitments (IFRS)
• 40% of employees active
150 000 Assets per employee

In 2000, the cost of working time in France was lower than in Germany

The charges prevent us from being competitive. In 2000, before the implementation of the 35 actual hours, the cost of labor in France was generally 10% lower than in Germany; Today, for the whole economy included in the services, we are always more expensive

This delay of competitiveness is due to too many civil servants per habitant in relation to the scope of public services. Switzerland has 15 points under compulsory levies that France and a different system of parliamentary representation. Parliamentarians are not servants but professionals paid 40% of their elected job.

Switzerland is a participatory democracy, while democracy in France is representative.

It should not be confused with public utility status agents

We have 5.5 million employees, 7 million counting those who are paid by the state, such as private school teachers paid by public spending since it's a public service. It should not be confused with public utility status of agents that make it, as in Sweden, where in the name of freedom, in the name of equal treatment of citizens, the public service has been abolished in favor of a permanent contract.

The French should be put on an equal plane! Territorial officials have increased: 900 000, but according to the Court of Auditors only a quarter is due to the transfer of skills. Essentially category C of the administration, because there is no competition. Recruitment is at the client's head. This is cronyism and mismanagement or "mis-management".

In 1997, Jean Choussat, former Budget Director, thought that could reduce about 10% public service if we wedged the public about private without reducing the public service: we would like the results of the sector private health which represents 25% of the beds, 34% business and 17% of costs.