France's public debt hits over 100 pct of GDP

Source: Xinhua| 2019-12-20 22:53:31|Editor: yan
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PARIS, Dec. 20 (Xinhua) -- France's public debt reached 2,415.1 billion euros in the third quarter of 2019, accounting for 100.4 percent of gross domestic product (GDP), the National Institute of Statistics and Economic Studies (INSEE) announced on Friday.

"At the end of Q3 2019, Maastricht's debt reached 2,415.1 billion euros, up 39.6 billion euros in comparison to Q2 2019. It accounted for 100.4 percent of gross domestic product (GDP), 0.9 points higher than last quarter. Net public debt increased more moderately (+15.0 billion euros ) and accounted for 90.3 percent of GDP," INSEE said in its statement.

In euro-zone, the term of "Maastricht's debt" covers all general governments in the sense of the national accounts: the State, other government bodies, local governments and social security administrations.

In the third quarter, France's State and central agencies debts went up while local government and social security funds debts went down, and the State's contribution to debt increase "stemmed mainly from a long-term negotiable debt" and "to a lesser extent from short-term negotiable debt", said INSEE.

It is possible that the government delivers its goal of keeping the debt ratio no higher than 98.7 percent for the whole year of 2019, because the Q3 situation is temporary and the ratio should logically go down in Q4, analyzed French economic daily Les Echos.

Under the Maastricht treaty, which entered into force on Nov 1, 1993, for a state to move into the single currency -- euro, public finance deficit must be kept below 3 percent of GDP and public debt must be limited to no more than 60 percent of GDP.

France has not seen its public debt below 60 percent of GPD since Q3 2002. In 2017, the public debt accounted for 100.7 percent of GDP in the first quarter and 100.9 percent in the second quarter. (1 euro = 1.11 U.S. dollars)