Upside down budgets: French Cuts and German Spending [EN]

Philippa
Sigl-Glöckner hosted Cyprien
Batut from the Institut Avant-Garde in Paris. They
explored the surprising reversal of fiscal policies in France and
Germany. Historically, Germany has been the fiscally prudent one,
while France was seen as a big spender. But now, Germany is
ramping up spending as France pushes through major budget cuts.
Philippa and Cyprien also touched on the benefits
of thorough budget and spending reviews, to
properly assess and improve spending efficiency.



France's Budgetary Tightrope Walk: France
aims for over €44 billion in cuts by
2026. This is a direct response to the European Commission's
excessive deficit procedure.


Germany's Spending Spree: Germany's
budget increased by €35 billion this year, marking a shift
towards a more expansionary fiscal stance.


The Power and Limits of the IGF: France's
highly respected Inspection Générale des Finances
(IGF) consistently produces
detailed budget and spending reviews.
While these reports highlight significant areas for efficiency,
their implementation often falls short due to a lack of
political consensus.


French Political Fragmentation: France's
fragmented Parliament makes passing the budget incredibly
difficult. Without a clear majority, the government often
relies on a "vote of no confidence" mechanism to get financial
legislation through, making big cuts even tougher.



Check out the Institut Avant-Garde
website: https://www.institutavantgarde.fr/