France’s public debt has reached a record level!
The country’s budget deficit has reached 5.8% of GDP, significantly exceeding the 3% limit set by the European Union.
France is facing serious economic pressure amid growing problems in public finances, political instability and street protests. The country’s budget deficit has reached 5.8% of GDP, significantly exceeding the European Union’s 3% limit. Public debt has risen to €3.596 trillion, equivalent to approximately 119% of GDP. Rising borrowing costs are making the situation even more difficult. France’s annual interest payments are expected to reach €65 billion. As this amount becomes one of the largest items in the state budget, it is increasing the country’s financial burden. Analysts warn that if France’s economic growth remains below borrowing costs, debt could increase even more rapidly.
The government has prepared a €54 billion austerity package aimed at reducing the budget deficit to 5% by 2027. However, the plan has faced significant protests across the country. Public sector workers, firefighters and students are demanding higher social and education spending. Financial problems have also affected markets. The euro has fallen below $1.12, while the yield spread between 10-year French and German bonds has approached 150 basis points. Analysts are concerned that France’s situation could spread to other eurozone countries and increase the risk of a new debt crisis in the region.