Even the IMF is going after France — not a good look for a First World country.
France’s state audit office, the Court of Auditors, has issued a stark warning regarding the country’s welfare spending, projecting an impending “liquidity crisis.”
The auditors’ report reviewed by Politico indicates that welfare expenditures are “out of control” and could leave France running out of money as early as 2027.
“We need to take back control. Over the past years, especially in 2023 and 2024, we have lost control of our public finances,” the court’s president, Pierre Moscovici, said in an interview with RTL.
The government forecasts a social budget deficit of €15.3 billion for 2024, expected to escalate to €22.1 billion in 2025. However, the Court of Auditors deems even this substantial projection overly optimistic, citing the government’s overestimation of economic growth and the impact of tax cuts.