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

Episode von Die Geldfrage von Dezernat Zukunft · 25. Juli 2025 · 25 min

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/

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