France’s economy minister Bruno Le Maire says he wants to slash the country’s multi-trillion euro debt, starting by launching the 2024 budget plan he introduced in September.
Together with Greece, Italy, Portugal, Spain and Belgium, it’s one of the EU and euro area countries whose debt is higher than 100% of their respective GDP.
French authorities, like governments across the world, have spent huge sums of public money to counterbalance the negative effects of several crises.
The most recent example of this is the energy and cost of living crises sparked by Russia’s invasion of Ukraine, which prompted swathes of public spending to cushion the damage to households and the economy, but also the COVID-19 pandemic and the 2008 financial crisis.
A significant part of it is reimbursed through people’s savings and life insurance – like in Japan, the developed nation with the highest debt (above 250% of its GDP).
France is still considered trustworthy by financial rating agencies: In spite of several social crises and episodes of violence, its relative political stability and credibility thanks to honouring past reimbursements mean the country is attractive to investors – including those who can lend money.
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