The announcement of plans for a new national loan is another example of Nicolas Sarkozy’s tactical skill. Helped – sadly ¬– by the economic illiteracy of our fellow countrymen, he is turning the mortal sin of excessive national debt into a miracle cure to fund new forms of future investments. Instead of endlessly and fruitlessly demonstrating every month about the impact of the crisis, the social partners are being asked to come up with new spending ideas for which miraculously painless, virtuous and virtually unlimited funding appears to have been found. The taxpayer, who had every reason to fear that the mountain of debt would lead to an increase in his taxes, ends up being turned into a virtuous investor who will be financially rewarded for his valiant patriotic contribution to national recovery. In so doing, the President is gaining time to keep the general public quiet until the recovery plan that was agreed a few months ago really starts producing positive results.
The risk with this ‘political’ loan, in the strongest sense of the word, is that it might give our fellow countrymen, who are always only too ready to wriggle out of whatever efforts are needed, the idea that we once again have a pot of money big enough to solve all our problems painlessly. This brings to mind the surreal debate that took place under the Jospin Government, when there was an unexpected reduction in the huge budget deficit at the time: the ruling and opposition parties competed with each other to come up with proposals for new expenditure, in the mistaken belief, as they rubbed their hands with glee, that a smaller deficit meant more money to spend!
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