4 the Parliament had established an evolution of 1

The recommendation is technical but it occurs in a political and financial context specific. The Court of Auditors certified, yesterday, the accounts of the State for 2008, attached to this notice of 12 reserves, including substantial new (read here), or as much as last year. If a substantial reserve was lifted (on account of the public proceedings managed by Coface), a new has been brought on the absence of accounting in the balance sheet of the State of the amortization of the social debt (Cades) Fund. Of course, the social debt is recorded in the public debt within the meaning of Maastricht, but it does not appear in the historic balance sheet of the State. For the Court, the State must reclassify the Cades as "controlled entity" as "the set of review criteria are met": guardianship of Bercy, majority of the voting rights in the Board of Directors, etc. "rating agencies and financial markets include the fact that the Cades benefits of the implicit guarantee of the State", stresses on rue Cambon.

This guarantee should lead the State to include the risks assumed in its balance sheet. The accounting reclassification of the Cades degrade 80 billion net position of the State to December 31, 2008. According to the Court, the Ministry of the Budget "is committed to finding a solution" this year. Judges don't hide not their desire to focus on the situation of the Cades, while the State has transferred debts last year EUR 26.5 billion, and the 2009 social security deficit will impose a new choice Corneille, the Government giving priority at this stage a recovery by the State on the part of the social debt related to the crisis ("Les Echos" from May 18).

The revalued assets

Certified accounts show a degradation of the net position of the State, of EUR 29.7 billion in 2008, 686 billion euros. The asset was revalued 84.1 billion (at 639,3 billion), due to an improvement in capital assets (upgrading of road network, the assets of the defence) and the integration of intangible assets (UMTS licenses for 4 billion, quotas of CO2 emissions to 8.2 billion) and the progress of the cash.

But the liability is massively cumbersome, of 113 billion euros (at 1.325 billion) due, mainly, of the progress of the debt. The accounting result of 2008 shows a "particularly dynamic" progression of loads "that does not compensate for the increase in tax". And the Court to warn: "As of 2009, the combination of increased expenses and lower products strengthen the impact in the accounts."

This finding is also the report on execution budget 2008, annexed to the Bill of law presented tomorrow in Council of Ministers. It refers to a budget deficit of $ 56.3 billion euros, represented 20.2 per cent of the expenditure and 25.4 of the revenue, "then even the impact of the crisis was low last year" (2.5 to 4 billion euros of losses). The revival of State capacities were therefore very limited. The Court notes that all of the expenses of the State budget grew by 3.4 (the Parliament had established an evolution of 1.9): expenditures implemented by operators continue to substitute for those departments. Magistrates also point the increase of tax expenditures: number 486, they still grew by 7 in 2008, 70 billion. The next report, adopted in late June is feared by the Government: it will focus on the 2009-2010 financial Outlook.