Gné? Oh yes, the socioeconomic situation of course, but also the political one, notably with the fall (not yet announced at the time of writing) of the Bayrou government.

France : la 4ème République se profile à l’horizon

I already predicted all this a little over a year ago, so I won’t go over it again. Just reread the article above; everything is still relevant, down to the last comma.

So, a year later, why bring it up again then?

No, actually, I just wanted to address the budgetary problem that France is currently going through.

And I don’t really see what the problem is. When finances can’t keep up, well… you simply cut back, don’t you, while waiting for better days?

Cutting back on expenses, cutting back on lifestyle, well yes, it’s unpleasant, but that’s how it works.

And as we wrote in the previous column, we don’t go overboard with unbelievable projects and expenses, no, we really focus on what’s a priority.

And what’s a priority in a country like France? Well yes, water and electricity already 🤣 Then health care, that’s obviously sacred and untouchable, national education, security, infrastructure, justice…

That’s what’s a priority. Of course, all that will continue to work after Mr. Bayrou, we’re not too worried. The Vitale card won’t be blocked tomorrow 🤣

But once again, we shouldn’t hesitate to cut back, as they say. When you have to trim the €40 billion mammoth, well, you have to trim it, it’s as simple as that.

So there are unpleasant trade-offs to be made when there’s no choice. And a lot of savings to be made in other areas, certainly important but certainly not priorities or urgent.

It’s exactly like a family budget, as I taught you to do. There are essential items, like housing, food, healthcare… water and electricity

But frankly, there’s room to save on everything else. All your subscriptions, insurance, and all those recurring payments, for example. Take stock of all that, renegotiate, revise downwards… or even completely eliminate it when it’s unnecessary.

When you downsize, you also reduce your budget for outings and leisure activities, for example. Well, yes, by staying home you automatically save money 🤣 on transportation, food, entertainment, etc.

So here’s another perfect illustration of not blowing your top. Instead, we grit our teeth and reorganize our budget.

… and at the same time, we also try to see how we can increase our income.

It’s tempting for many people to take the easy way out and borrow to finance their lifestyle: and that’s exactly what France has done in recent years.

Up to €1 trillion borrowed, waaaa… the interest alone is enough to make you sweat.

So no, borrowing to finance your lifestyle is a very bad plan. You’ll quickly find yourself in a pinch and mortgaging your future.

On the other hand, borrowing to invest in something that will bring you money, directly or indirectly, yes, that’s a very good plan.

In the realm of government and public services, I agree that it’s not quite the same problem as in a household. But there are still many similarities, compared to everything I’ve just written.

No matter who the next tenant of Matignon is: the French have understood that there will inevitably be a bit of austerity to go through.

(edit 7:00 p.m.: the Bayrou government is overthrown)