Report
The fiscal problem in the euro zone and France has two causes: Transfer payments to households and falling productivity
We can identify two cumulative causes of the fiscal problem in the euro zone and in France, both of which make it impossible to carry out the necessary public spending (energy transition, education, research, etc.) because of the increase in the fiscal deficit (and in the primary fiscal deficit excluding interest on debt). These are the facts that: Governments have absorbed a large part of the slowdown in growth by increasing their transfer payments to households; Labour productivity - and therefore the level of GDP and tax revenues - has fallen. There is both a question of the distribution of overall income between economic agents, and a question linked to the weakness of this overall income.
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Natixis
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Patrick Artus
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