The French economy

Investment Analysis Clubs Macro Economic Trends and Risks
1

Probably worse than ours here in the UK, but we are catching up fast:

Rolling over the 2025 budget will allow the government to keep paying pensioners and civil servants and collecting tax – but the government will make no progress towards reining in France’s ballooning budget deficit and public debt, particularly after already being forced to scuttle a cost-saving increase to the state pension age.

The government warned this week that as things stand, the deficit will be 5.3pc of GDP next year – barely down from this year’s 5.4pc and well above Mr Lecornu’s target of 4.7pc.

https://archive.is/dGvjU#selection-3857.0-3861.178

2 Likes
2

France is a good example of voters making bad choices. Taxes are already high and they resist efforts to cut costs by trimming benefits.

Where does this lead? Will voters get the message or are they headed for bankruptcy. Now that they use the Euro printing money is not possible. Rising interest rates seem likely. Will their bonds be downgraded to junk?

1 Like
3

Guillotine of elders.

5 Likes