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Is the end of low interest rates a problem for consumers, but is it also for the state? L’editorialist economics alexandra Bensaid was on the 20 Hours set to answer this question.
“It’s even more than a problem, it’s a change of world! As you know, in recent years, the State has gone looking for money to pay its expenses on the financial markets. And, with the latest crises, more and more. Suddenly, the backpack of debt has grown, up to 113% of GDP. But with very low or even negative interest rates, that doesn’t weigh on your shoulders. Except that, with the rise in rates, because of inflation, it’s ending for the States too‘, explains Alexandra Bensaid.
The budgetary equation will therefore be difficult for the new government. “For the government: on the one hand the money costs more than expected. On the other hand, growth is stagnating, which means less tax revenue. However, he wants to support purchasing power – we do not know how long – and reduce taxes, while lowering the deficit and the debt over the five-year term. Keeping all these promises is quite a headache. Won’t choices have to be made? We have the right to ask the question“, says the editorialist.
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