France's economic strain: debt tops 119% of GDP as growth slows

economictimes.indiatimes.com —

France faces severe economic strain as public debt exceeds 119% of GDP, constraining fiscal policy amid protests over rising living costs and low growth forecasts of 0.4%, the weakest among developed nations. Government spending consumes 57.2% of economic output, well above the EU average of under 50%, while tax revenue ranks second-highest in Europe at 45.2% of GDP. France's 10-year bond yield stands at 4.96%, notably higher than Germany's 3.4%, increasing borrowing costs and limiting funds for public services. The debt, nearing 3.6 trillion euros, is expected to reach nearly 122% of GDP, a record, as budget overshoots EU limits. Analysts contrast France's "false promises" with Greece's past crisis, noting policymakers face limited options between spending cuts or tax increases.


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