. i will therefore now focus on government operating expenditure, which is used in particular to produce major public services. it is sometimes argued that the deterioration in the public finances is primarily due to high amounts of social protection expenditure and transfers, which amounted to approximately eur 900 billion ix in 2022, or 34 % of gdp. operating expenditure is far from being negligible : it accounts for almost a third of public spending ( eur 475 billion, or 18 % of gdp ) and is therefore a significant potential source for improving public sector efficiency. central government and national agencies account for eur 200 billion of this amount, but local authorities with eur 155 billion account for an increasing proportion. when measured in terms of number of public employees, resources have steadily increased over time. according to the cour des comptes, x the number of public sector employees grew by more than one million between 1996 and 2020, i. e. an increase of 23 % driven largely by local government ( + 58 %, and page 13 of 19 still 47 % even after adjusting for skills transfers ). consequently, the number of civil servants has grown faster than the number of people in market sector employment ( + 21 % ). emerging from the crisis in public services these considerable resources together with the high level of public spending are nevertheless accompanied by a strong impression that public services have actually been deteriorating in recent years. to give just one emblematic example, despite spending 5. 2 % of gdp on education, france only ranks between 23rd and 25th xi among the countries assessed in the latest pisa survey and often compares unfavourably with germany, which only spends 4. 5 % of its gdp on education. too many public services in france give rise to dissatisfaction on the part of those involved - civil servants - users - citizens - page 14 of 19 and those who finance the services - the taxpayers. these doubts affect essential services such as health, education, justice and the police. far from being some fatalistic pessimist, i believe that public services can actually be turned around ; not necessarily by increasing resources – which we can no longer afford to do – but as much by an equally important focus on management – i'll come back to these later. these transformations must be effected in liaison with managers and public servants and not in opposition to them : the demands made of civil servants are legitimate ; systematic and often demagogical criticism of them is not. emerging from the crisis in public services is a matter

financial intermediaries, public intervention is since last fall also aiming to support banks ’ financing and own funds. this is a significant shift. needless to say, restoring liquidity remains a pressing priority. inter - bank markets have shown gradual signs of improvements. yet, there is still some way to go. to this end, central banks have mobilised considerable ammunition. a process underway for over a year has culminated in the central banks having adjusted their operational frameworks in various areas. the maturity and currency of their facilities have been expanded. the range of eligible counterparties has been broadened. the tender procedures have been modified with a view to ensure unlimited amounts of central bank money. the list of collateral for refinancing has been widened. as for the eurosystem, they have been providing liquidity at a fixed rate for unlimited amount. enhanced international coordination between monetary authorities is ensuring that their actions are part of a consistent overall strategy. these measures are highly exceptional with indeed unprecedented monetary easing leading key policy rates to historically low levels and the adoption, in certain cases, of unorthodox monetary policy actions. as such, they should greatly contribute to restoring confidence and a smooth functioning of money markets. governments have moved aggressively to support banks'solvency and resilience. since the paris declaration by euro area member - countries, europe, under the leadership of france until year end, has been acting according to what i consider a sound and consistent action plan. i won ’ t enter into the details. just bear in mind the three following elements. first, authorities are extending guarantees to banks ’ refinancing so that they can, in turn, properly finance the economy. second, significant reforms of accounting rules are now being implemented. basically, these reforms allow banks to transfer instruments previously marked to market to portfolios where that will no longer be the case. they also provide for greater flexibility in methods used to value assets whose market has shut down. third, and lastly, governments have confirmed their willingness, when warranted, to step in and support banks ’ capital. what about france ’ s actions? government and parliament very quickly put meat on the bones of the european principles. a new bill has been passed, which provides for two things. first, it sets up a eur 320 billion funding vehicle to guarantee banks ’ medium - term refinancing ( i. e. up to five years ). this vehicle is strictly supervised by the french government and the banque