France's budget deficit continues to widen: it has gone from 4.2% of GDP to 5.2%, then 5.6%, and it is now estimated to exceed 6%. The European Commission, according to its rules, does not tolerate more than 3%. France is currently borrowing on financial markets at higher rates than Spain or Portugal. The Commission is preparing to initiate a procedure against France for "excessive deficit." The political crisis in the country is not over, and a financial crisis looms.

Another surge in French debt... €3,228.4 billion in the second quarter. Are French public finances out of control?

I fear so. These numbers are astronomical and can only be partially explained by the costs of COVID and the energy crisis. What worries me are the markets. The 10-year interest rate gap with Germany has widened since the dissolution. We are now borrowing under the same conditions as Spain and less favorable conditions than Portugal. France's credibility is slipping away, and that's very dangerous.

Can taxes in France be raised further? Should Paris implement an austerity budget?

I am convinced that we can and must restore our public finances without increasing mandatory taxes, which have never been higher and are the heaviest in the world. Reinstating the wealth tax (ISF), for example, would be an economic folly. In the end, it would cost us jobs and lower living standards.

What urgent budget reforms need to be implemented?

In the very short term, we must heavily penalize excessive sick leave, reinstate the unemployment insurance reform that was interrupted by the dissolution, reduce subsidies to associations, and make certain programs like the culture pass means-tested. This could save around €15 billion. Then, we need to face the elephant in the room: our public sector is overall costly and inefficient. Reforming it is the major project for the coming years.