"Economically, it's about money and France's towering debt burden. In absolute terms, no EU country holds more consolidated national debt than France. Sovereign debt has climbed to around 3.35 trillion ($3.9 trillion) about 113% of gross domestic product (GDP), with the figure expected to rise further to 125% by 2030. Europe's debt king France's debt-to-GDP ratio is so high that only Greece and Italy surpass it within the European Union."
"With a budget deficit of 5.4% to 5.8% this year, Paris also runs the largest budget shortfall in the 27-nation EU. To meet the EU's target of reducing the deficit to 3%, drastic savings are unavoidable. However, since cuts are currently politically untenable, financial markets have responded with higher risk premiums on French bonds. While German bonds carry an interest rate of about 2.7%, the French government needs to pay close to 3.5% interest for its debt."
Prime Minister Francois Bayrou is poised to lose a confidence vote as the government lacks a majority to enact budget-cutting measures to reduce public debt. Political uncertainty could prompt new elections demanded by the far-right or lead President Emmanuel Macron to attempt another minority government, benefiting Marine Le Pen and Jordan Bardella. France holds the largest consolidated national debt in the EU at around 3.35 trillion ($3.9 trillion), about 113% of GDP and projected to reach 125% by 2030. With a 5.4–5.8% budget deficit and politically untenable cuts, markets have pushed French borrowing costs higher.
Read at www.dw.com
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