French debt will reach a record level in the coming year. The EU’s capacities seem to be exceeded, and other European countries are likely to follow the negative trend soon, DWN wrote.
France expects a further increase in debt in the coming year which is said to reach 96.5 percent of GDP, French Finance Minister Michel Sapin said on Wednesday.
Thus, with 96.3 percent in 2015 and 95.6 percent in 2014, France will face an unprecedented debt level in 2016.
At the same time, Sapin promised a modest improvement in France’s finances and slight economic growth by one percent in 2015 and by 1.5 percent in 2016.He also mentioned that the total government spending would decrease to 55.1 percent of economic output in 2016 from an estimated 55.8 percent in 2015, one of the highest ratios among developed countries.
The French EU Commissioner for Economic Affairs Pierre Moscovici considers it possible that the debts of European countries may soon increase further due to the refugee crisis.
“We will now analyze whether the refugee crisis can be classified as an extraordinary circumstance; this is still the largest migration of peoples here since the end of World War II,” Moscovici said, adding that the current situation is likely to influence the financial situation in the EU countries as humanitarian costs – if not reconsidered — may also fall into the category of national debt.