We recently learned: the French State announced that it is closing a platform used by companies for electronic commerce (electronic invoicing, etc.). Companies must look for a private provider. The consequences? Hassle, work and high costs for businesses. Why is the French State stopping making this platform available? It is probably not the awareness of the fact that the State has nothing to do in the field of the economy. It is quite simply – and so banal – the lack of resources.
The high level of public debt leads to a drop in benefits in France
Unease in France: while France’s gross domestic product is around four times higher than that of Switzerland, its state apparatus spends around six times as much. Our neighbor’s nominal public debt is almost fifteen times higher than ours. While our debt rate (debt expressed as a percentage of GDP) is less than 30%, its debt rate has exceeded 100% since 2020. Therefore, if the State must spend more on debt interest that for education or defense, this will inevitably have consequences: our neighbor must save money, and seriously. It is obvious that businesses are anything but happy to see the electronic platform disconnected. Citizens are not enthusiastic either, as the outlook for the new year is less benefits and more taxes.
The debt brake protects Switzerland from a debt spiral
And that’s the whole problem. Citizens and businesses want to be able to count on the State. He must keep his promises. Without new taxes or “stop and go”. This capacity of the State to provide services depends on the policy as a whole (continuity), but very concretely, it depends above all on the means: stable, balanced and solid finances. Big promises followed by announcements relating to a lack of resources which prevents their realization destroys confidence in the long term. Switzerland – the Confederation in reality – also went through a phase where debts threatened to explode through spending. The economic programs followed one another. Until the people, tired of untimely changes of direction, “condemned” the State to stability by adopting the debt brake. And that turned out to be a good thing.
Citizens as well as businesses must be able to count on the State. What the State promises, it must deliver. Without constantly introducing new taxes or doing “stop and go”. This requires long-term financial stability.
Parliament must hold the reins
Today, the Confederation once again risks seeing its expenses spiral out of control. Twenty years of stability and solid performance – the fact that this is a blessing seems to have been forgotten in today’s small and busy political world. The main points remain valid: the important services that the population and the economy expect from the State are security and the foundations for overall prosperity, that is to say training, infrastructure, solid relations with the ‘stranger. It goes without saying that in a changing world, priorities always change a little. Politics must be able to support these changes and understand them. That said, we can fairly clearly distinguish the broad outlines of “nice to have”. An honest look is usually enough: A public electronic platform, possibly with tax advantages, can certainly be nice. But, like many other things, it is not part of the main mission of public service.
The State must refocus on its main tasks
During the debate on the budget, which will take place during the winter session in Bern and which will begin next week, it will be a question of separating what is essential from the too many things that are desirable. The debate on the budget relief program, which will take place next year, must also be aligned with this perspective. The state will never be able to provide “all things to all people,” and it should not try to do so. There will never be enough resources. What is at stake are stable (financial) foundations for the essential tasks of the state. Thanks to the debt brake, we benefit from this stability at the level of the Confederation, which is at the head of the public budget by far the largest in the country. Preserving stability over time is the mission that the people have entrusted to the political world by establishing the debt brake.
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