France’s Budget Crisis: Implications of Government Collapse and Debt Challenges
The collapse of the Barnier government poses serious challenges for France’s budget and ongoing financial rehabilitation, as the nation faces the third highest debt ratio in the Eurozone. Economist Manuel Oechslin warns that increased debt costs might soon become unsustainable. The failed budget proposals radically limit political maneuverability for future administrations, risking EU sanctions if fiscal problems are not addressed. Despite comparisons to Greece’s Euro crisis, Oechslin emphasizes France’s larger economic clout and capabilities, though warns further spending cuts could jeopardize crucial areas like defense and support for Ukraine.