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Policy Compass
Nov 20, 2024
France: Shaky Debt Sustainability Aggravates Political Instability
France: Shaky Debt Sustainability Aggravates Political Instability
By Shahed Hassanaly
20 November 2024
In this paper we discuss:
How France’s rising debt burden and fiscal imbalances present a complex challenge as the country navigates political instability, and economic pressures on both its sovereign debt and the fiscal side.
That under President Emmanuel Macron, political fragmentation and frequent protests have underscored the nation’s deep-seated socio-economic divides, complicating fiscal policy decisions.
The fact that public discontent has intensified due to controversial reforms, including pension adjustments and increased defense spending, which have been met with resistance, especially from those advocating for social welfare prioritization.
Why, given the French macro environment, market confidence in the Hexagon is at an all-time low.
