French Budget Is a ‘Ticking Bomb’ for Euro, ING’s Pesole Says
31 Articles
31 Articles
EDITO. Even if the ECB eventually saved France from bankruptcy, rising rates and debt burdens would deprive its economy of oxygen.
While France is expected to record the worst public deficit in the euro area in 2025 and 2026, borrowing at ten years of age could soon cost it more than in Italy, after Spain and Portugal,
The French government's plan involves cutting €44 billion in public spending, including the elimination of two national holidays.
France's fiscal policy will sooner or later lead to the abyss; a change would be possible, but there is no political will to support inconvenient decisions.
The economic situation in France is becoming increasingly critical, and the French government is now paying higher interest on its debt than Italy.
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