The basics The 2020 figures for the social security deficit have been prepared. The deficit is 38.9 billion euros. Initially, a deficit of 49 billion euros was chosen.
The social security deficit in 2020 will finally amount to 38.9 billion euros, a far less miserable level than the 49 billion euros announced at the end of the year, the Minister of Public Finance, Olivier Dussopt, announced on Tuesday. “The social security deficit is being revised to 38.9 billion euros. This is still a historic record and we have to get out of the crisis,” said Olivier Dussopt on Twitter.
? # Security | As I announced in my interview with @lopinion_fr, the French economy has finally held up better in 2020.
The security deficit is therefore revised to EUR 38.9 billion. This remains a historic record and we have to get out of everything connected with the crisis
– Olivier Dussopt (@olivierdussopt) March 9, 2021
Between the exceptional expenses related to the Covid-19 epidemic (masks, tests, work stoppages, etc.) and the loss of income due to its economic consequences (partial unemployment, postponements and exemptions from contributions, etc.), the result remains very high, far from the deficit forecast of 5.4 billion before the health crisis. But the recession is ultimately a little less severe than expected (-8.2% of GDP anyway), especially thanks to a final quarter that is less bad than feared.
According to Olivier Dussopt, “the minister is pleased that this surge in activity, which has reduced the state’s forecast deficits, is having the same impact on social security”.
The details of the losses in each area of social security (sickness, retirement, family, accidents at work) should be known early next week.