How Debts Impact France's Economy
France is facing increasing financial pressures due to rising public debt and sluggish economic growth, with the 2027 presidential elections approaching. Since President Emmanuel Macron took office in 2017, France's debt has grown by more than one trillion euros, reaching approximately 98% of GDP, and is expected to jump to over 130% by 2030. The economy is projected to grow by less than 1% annually until 2028. Inflation rose to 2.1% in July, amid rising costs of servicing the debt, which reached 43.5 billion euros in the first half of the year. The French government faces a tough choice between cutting spending or increasing taxes, in the absence of a stable parliamentary majority and under political pressure due to the approaching elections. This situation complicates the implementation of necessary reforms to address the country's debt and economic growth challenges.
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