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France is facing a new governmental crisis, affecting the budget and the economy, in the context of a large deficit and increased public debt.

Liviu Brăteanu
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9 September 2025, 17:15
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The recent fall of the French government, the fourth in two years, complicates the country's economic situation, with a deficit of 5.8% and a public debt that has reached 114% of GDP. Austerity proposals have been rejected, and President Macron may appoint a new prime minister to find a consensus. The diversity of political opinion makes quick solutions difficult, and financial markets are becoming increasingly sensitive to instability. Compared to Germany, France has a more precarious fiscal situation, which could affect the entire Eurozone in the long term.

Sources

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News.ro
ANALIZĂ XTB: Parisul se confruntă cu o nouă criză politică. Instabilitatea ameninţă economia şi pieţele. Pe traseul actual, cu un deficit de 5,8% anul trecut, Franţa ar fi pe cale să ajungă la o povară a datoriei care ar gâtui economia reală
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Economedia
ANALIZĂ XTB: Parisul se confruntă cu o nouă criză politică. Instabilitatea amenință economia și piețele
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Adevarul
Măsurile de austeritate au doborât guvernul Franței: Instabilitatea amenință economia și piețele
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Financial Intelligence
ANALIZĂ XTB, Claudiu Cazacu: Parisul se confruntă cu o nouă criză politică. Instabilitatea amenință economia și piețele

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NEWS ON THE SAME TOPICS

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Politico: France has become “the new sick man of Europe”
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France lowers its economic forecast and announces that the deficit target for 2026 can no longer be met
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France’s private debt reaches 134.2% of GDP in an economy that also has public debt of 117.6%
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IMF chief warns France to reduce its deficit to regain the markets’ confidence
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Moody’s maintains France’s rating despite budgetary and social tensions
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Financial markets reassess European risk: Belgium borrows at nearly the same cost as Greece, while France surpasses Italy
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France economic challenges deficit

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