Protests and reforms: France's rising debt costs threaten stability
France is facing a significant financial challenge with rising public debt and interest costs, prompting the government to allocate €4 billion for education amidst protests. The country's debt-to-GDP ratio is around 120%, significantly higher than Germany's 65%. This situation has led to increased borrowing costs, with France paying nearly 1.6 percentage points more in interest on bonds compared to Germany. Despite the financial strain, political parties continue to propose costly measures without addressing fiscal realities. Experts warn that the rising interest rates could lead to a financial crisis if not managed properly, as the government struggles to balance its budget and refinance existing debt.
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