Informations Rapides · 25 June 2021 · n° 164

At the end of Q1 2021, the Maastricht debt accounted for €2,739.2 billion Debt of the general government according to the Maastricht definition - first quarter 2021

At the end of Q1 2021, Maastricht’s debt reached €2,739.2 billion, it accounted for 118.2% of gross domestic product (GDP). After the decrease in the fourth quarter of 2020 (-€23.7 billion), public debt strongly increased by €89.0 billion this quarter, partly to finance measures linked to the health crisis and the recovery plan. Almost half of the increase in public debt in the first quarter fed the general government’s cash position, so that net public debt increased more moderately (+€48.3 billion). Net debt stood at 104.0% of GDP.

In the first quarter of 2021, the State’s contribution to debt increased by €61.3 billion. The State mainly issues long-term negotiable securities (+€57.8 billion) and also short-term securities (+€5.0 billion). In addition, Treasury correspondents' deposits decreased by €1.5 billion.

The social security administrations (Asso) increased their contribution to the gross debt (+€26.3 billion). Acoss increased its debt by €9.3 billion via its short-term securities. Cades' debt increased by €16.6 billion, mainly in the form of long-term negotiable securities (+€18.2 billion), while its outstanding short-term securities decreased (-€2.2 billion). During this quarter, Cades paid €8.7 billion to Acoss for taking over the debts of Cnam and FSV.

The contribution to Maastricht debt by local authorities increased slightly in the first quarter (+€0.9 billion), mainly driven by the regions and municipalities (+€1.2 billion and +€0.2 billion respectively), while Île-de-France Mobilité and Société du Grand Paris reduced their debt (-€0.1 billion and -€0.2 billion respectively). The contribution to the debt of the various central government bodies (Odac) increased moderately in the first quarter (+€0.6 billion). SNCF Réseau's long-term negotiable debt increased by €0.4 billion. The CEA increased its short-term borrowings by €0.1 billion.

The net public debt reached €2,410.0 billion (equivalent to 104.0% of GDP versus 102.6 % the previous quarter), a €48.3 billion increase. During the first quarter, the net debt increased less strongly than gross debt (spread of €40.7 billion) due to the increase in government assets, mainly deposit (+€40.9 billion). The cash stock of the general government reached €194.7 billion at the end of the first quarter.

In the first quarter of 2021, the total value of listed equities and collective investment schemes held by general government increased by €4.0 billion, to €265.3 billion after €261.3 billion at the end of 2020. Gains in holdings amounted to €6.3 billion in the wake of rising stock markets, but sales of securities were higher than purchases (-€2.3 billion). The social security authorities sold €2.5 billion of listed shares or mutual fund shares, notably Unédic (€3.7 billion of money market fund shares), while the State bought €0.2 billion of ORANO shares.