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2009 and 2020 crises: the crash test that changes the escape clause

Historical lessons for a rule that is strict in ordinary times yet usable during a major shock.

2009 and 2020 crises: the crash test that changes the escape clause
2009 and 2020 crises: the crash test that changes the escape clause

2009 and 2020 are constitutional crash tests

France recorded nominal deficits of 7.2% of GDP in 2009 and 8.9% in 2020. These figures do not establish how much was unavoidable, but they show that a fiscal constitution must survive extraordinary shocks.

Proposed escape architecture

TriggerCertified severe downturn or exceptional event outside government control.
Time limitOne year, renewable only while conditions persist.
Separate accountExtraordinary costs are not hidden inside ordinary spending.
AmortisationA future correction plan is adopted at the same time.

Main official sources