On the TF1 8 p.m. show on Tuesday evening, the Prime Minister compared France's borrowing interest rates to those of Greece. In the event of censorship from his government, he fears “serious turbulence on the financial markets”.
Michel Barnier was the guest on 8 p.m. on TF1, Tuesday September 26. “The moment is very serious,” said the Prime Minister, referring to the potential censorship of his government by other political forces in the country. At issue: the 2025 budget. “It is the vote on the nation's budget which is at issue, and which conditions the life of municipalities, the State, hospitals”, recalled the head of government. He also took the opportunity to remind us that the text of the budget, as it stands, should be subject to forceful passage.
After a round in the Senate and in the joint committee, there will then be “a vote probably with a 49.3 in the National Assembly because there is no majority (…) that's how I “I will be obliged to propose to the National Assembly to adopt the budget,” he said.
France's borrowing rates “almost at the level of Greece”
Now cornered, suspended on Marine Le Pen's decision to vote, or not, on a joint motion of censure with the left to try to bring him down, the tenant of Matignon spoke out on the consequences of censorship and a lack of agreement on the 2025 budget. “The moment is very serious (…) There will be a storm, serious turbulence on the financial markets,” he warned on the TF1 set.
The Prime Minister spoke about France's heavy deficit and very costly debt financing for the country: “We are already borrowing our interest rates very high, the interest rates that we are obliged to respect to finance our debt with Chinese or American investors They are currently almost at the level of Greece,” declared Michel Barnier. If since 2019, Greece has been “borrowing again on the financial markets at interest rate levels close to other states in the euro zone”, according to the Banque de France, it is difficult not to associate the comparison of the tenant of Matignon to the situation in Greece, fifteen years earlier.
In 2009, the new Greek government announced that its predecessor had hidden a catastrophic situation in public finances. Public debt amounted to 126.7% of GDP and the public deficit exceeded 15% of GDP. Extremely high levels which have scared away investors or forced some to demand very high interest rates to continue lending to the country.
Michel Barnier rules out the possibility of resignation
Today, the gap between the interest rates on the ten-year benchmark loan between France and its German neighbor – for example – has reached its highest level since 2012. This is why, in people's minds, the Michel Barnier's exit may appear unexpected, even worrying. One thing is certain, the Prime Minister has ruled out the possibility of resignation: “Why do you want me to resign?” he said during his interview on Tuesday evening.
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