France's protests mask a deeper fiscal crisis as debt nears 120% of GDP

France is engulfed in violent protests over rising costs and poor public services, while a larger fiscal crisis looms as its public debt nears 120% of GDP. The unrest threatens President Macron's government ahead of the 2027 election. France's 10-year bond yield has climbed to nearly 4.9%, its highest in over two decades, with the spread over German bonds near 140 basis points. The government proposes 43 billion euros in cuts and tax increases to reduce the deficit to 5% of GDP by 2027. Pension costs consume up to 32% of some ministry budgets, limiting funds for education and services. Debt interest payments are projected to reach 91.2 billion euros in 2027, exceeding education or defence spending.