Emergency aid plan: no tax increase, according to Gérald Darmanin

French Minister of Public Action and Accounts Gérald Darmanin addresses deputies during a session of questions to the Government at the French National Assembly in Paris, on July 5, 2017. / AFP PHOTO / Martin BUREAU (Photo credit should read MARTIN BUREAU/AFP/Getty Images)

No tax hike, it’s the government’s commitment, even though state spending has exploded since containment while revenue has slowed. “When we put more taxes on the backs of companies and employees, we discourage. So we chose to go into debt rather than going towards economic bankruptcy,” explained Gérald Darmanin, the Minister of Action and Public Accounts.

Low interest rates

With the revaluation to 110 billion euros for the government emergency plan for companies, announced yesterday Wednesday April 15, the public debt should therefore jump by at least 200 billion euros. Cumulative debt, which for 2020 would be around 115% of GDP. For the first time more than all the wealth created by the French economy in a year. Since interest rates are very low, France can now go into debt at a lower cost. But in a few years, when you have to pay back, raising taxes may be inevitable.

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