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dc.contributor.authorEgert, Balazsen_US
dc.date.accessioned2012-09-26en_US
dc.date.accessioned2012-10-11T15:55:58Z-
dc.date.available2012-10-11T15:55:58Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/64856-
dc.description.abstractFrance has a track record of persistent general government deficits, partly reflecting pro-cyclical fiscal policies in upswings. This has resulted in a quadrupling of its public debt-to-GDP ratio since the 1970s to above 80% of GDP. Reducing public debt is crucial because a high level of public debt may hamper long-term growth and may have a direct impact on fiscal sustainability if long-term interest rates rise. Bringing back public debt to 60% of GDP even by 2030 would require a fiscal effort of 4 to 5 percentage points of GDP (under the assumption of unchanged long-term rates), implying permanent primary general government surpluses, which is very ambitious in view of French fiscal history since 1970. The government's consolidation programme, which is aimed at reducing the general government deficit to 3% of GDP by 2013, represents around two-thirds of this effort. This study analyses how fiscal governance could be improved by the creation of a structural deficit rule and looks at ways the public deficit could be lowered. With France already having a very large public sector, most of the effort should be borne by holding down spending. Better control of the public wage bill, increasing public-sector efficiency and tackling age-related costs are the obvious candidates to contain expenditure. On the revenue side, there is significant potential for cutting tax expenditures. Furthermore, eliminating distortions in the tax base would encourage economic growth.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo Working Paper: Public Finance 3928en_US
dc.subject.jelH19en_US
dc.subject.jelH21en_US
dc.subject.jelH23en_US
dc.subject.jelH24en_US
dc.subject.jelH25en_US
dc.subject.jelH51en_US
dc.subject.jelH54en_US
dc.subject.jelH55en_US
dc.subject.jelH62en_US
dc.subject.jelH63en_US
dc.subject.jelH71en_US
dc.subject.jelH72en_US
dc.subject.ddc330en_US
dc.subject.keywordpublic debten_US
dc.subject.keywordgeneral government deficiten_US
dc.subject.keywordfiscal ruleen_US
dc.subject.keywordstructural deficiten_US
dc.subject.keywordfiscal councilen_US
dc.subject.keywordgovernment spendingen_US
dc.subject.keywordtax revenuesen_US
dc.subject.keywordlocal governmentsen_US
dc.subject.keywordpension systemen_US
dc.subject.keywordhealthcareen_US
dc.subject.keywordtax expenditureen_US
dc.subject.stwHaushaltskonsolidierungen_US
dc.subject.stwÖffentliche Schuldenen_US
dc.subject.stwFrankreichen_US
dc.titleBringing French public debt down: The options for fiscal consolidationen_US
dc.typeWorking Paperen_US
dc.identifier.ppn726454028en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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