Protests and Reforms: Rising Interest Rates Blow Up France's Budget

France is facing a financial crisis due to rising interest rates and high national debt, prompting the government to allocate additional funds for education despite limited resources. The country’s debt stands at around 120% of GDP, significantly higher than Germany's 65%. The government plans to issue loans for school renovations and university funding, but the rising cost of borrowing is straining finances. The risk premium on French bonds has surged, reminiscent of the Eurozone debt crisis. Political instability and public protests complicate fiscal reforms, with parties making costly promises without addressing the underlying economic issues. Experts warn that both France and Germany may face escalating interest payments in the coming years, highlighting the urgent need for fiscal consolidation.