Earlier this month, France’s government collapsed, leaving the eurozone’s second biggest economy dipping into a new low of financial problems. Officials who rejected Prime Minister Francois Bayrou’s government in an overwhelming vote, terminating any hope of making significant improvements on France’s budget deficits in the following year, reportedly the largest in the region. Bayrou’s ideas consisted of a 44 billion euro budget squeeze plan, which must now be diluted by whoever President Emmanuel Macron introduces as his successor upon his resignation.
It is predicted that Bayrou’s beneficiary will have to rely more heavily on taxes, rather than spending cuts, in order to reduce the budget deficit with the Socialists. It is predicted that from their group, the next Prime Minister could come, as they call for a 15 billion euro tax hike on the uber-rich.
“Submission to debt is like submission to military force,” Bayrou has proclaimed. “Dominated by weapons, or dominated by our creditors, because of a debt that is submerging us. In both cases, we lose our freedom.” France concluded the first quarter of 2025 with a public debt of 3.346 trillion euros, translated into 114% of gross domestic product (GDP). Debt services remain a huge budget item, factoring in around 7% of state expenditure. France’s deficit is among the highest in the developed world at the moment.
During the pandemic, numerous nations around the world put millions of dollars forward to contribute to research, medicine, and safety measures to stop the spread of COVID-19. However, France has struggled, substantially more than any other country, to bring its spending practices back down. Doing so would reduce its deficits significantly. The government reportedly spends more, as seen by its GDP, than any other developed economy. Their most recent budget plans brought about what many individuals would see as moderate spending cuts, being only barely more than a few percentage points off sending. However, upon implementing such cuts, France would still be the third greatest spender in the world.There is a widely shared perception in France and beyond the nation that public services have been declining. Healthcare workers have denounced a labour shortage in public hospitals, residents of rural areas have denounced the closing of rural train lines, and students and academics have denounced a lack of resources for public universities. As the issue has hit citizens in the most fundamental parts of their lives, many cannot predict an end to their nation’s financial struggles.
Written by Alexandra Kwitkowski
