On Monday, President Emmanuel Macron’s government is expected to fall for the second time in just nine months

 The European Commission reprimanded France last year, and Mr. Macron’s government raced to fix a surging debt and deficit with cuts to the welfare state and tax increases.

But the efforts were sidelined last summer when Mr. Macron unexpectedly dissolved the lower house of Parliament, the National Assembly, in a gamble that was intended to prevent a far-right party, the National Rally led by Marine Le Pen, from gaining more power.

That maneuver backfired, leading to a deeply divided Parliament and a new prime minister

France’s budget deficit reached 168.6 billion euros, or 5.8 percent of its economic output in 2024, the largest since World War II and well above the 3 percent limit required in the eurozone.

Today, France has €3.35 trillion of debt, which is expected to reach 116 percent of economic output this year, one of the worst in the eurozone. 

Interest payments have jumped to €66 billion from €26 billion in 2020, larger than the budget for education or the military.

France is a too-big-to-fail economy and is not about to go bankrupt.

https://www.nytimes.com/2025/09/07/business/france-government-collapse-economy.html


French government likely to collapse on Monday

https://englundmacro.blogspot.com/2025/09/wall-street-5-september-2025.html


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