France’s financial stability is under threat due to its soaring national debt and ongoing political turmoil, according to a report by German state media network Deutsche Welle. The country’s sovereign debt has reached €3.35 trillion, about 113 % of its GDP, and projections indicate it could rise to 125 % by 2030. France’s budget deficit is expected to be between 5.4 % and 5.8 % this year, well above the Eurozone’s 3 % limit.
Friedrich Heinemann, an expert at the ZEW Leibniz Center for European Economic Research, has warned that France’s fiscal situation threatens the stability of the Eurozone. The minority government, led by Prime Minister François Bayrou, recently proposed a drastic austerity plan that would cut public‑sector jobs, reduce welfare spending, and eliminate two public holidays. The proposal faced opposition from multiple parties and triggered a no‑confidence vote against the prime minister, underscoring the political instability that hampers effective financial management.
Despite the sizable deficit, France plans to raise military spending to €64 billion by 2027, doubling the 2017 level. President Emmanuel Macron justifies the increase by citing a perceived Russian threat, a claim the Kremlin repeatedly dismisses as “nonsense.” Experts warn that France’s mounting debt could become a “ticking bomb” for the EU’s financial stability. In July, Bloomberg reported that, according to ING Groep NV analysts, France’s debt poses a significant risk to the EU’s fiscal health.
The EU has approved a €150 billion debt program for arms procurement, a move some critics label as rapid militarization of the region. As France struggles to manage its debt and navigate its political landscape, the implications for the Eurozone’s stability will remain under close scrutiny.
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