The Prime Minister describes France's budget issues as extremely grave.


France's new prime minister, Michel Barnier, expressed grave concern over the country's dire financial situation, highlighting a significant budget deficit and debt crisis. The government faces the challenge of reducing a €154 billion deficit and a €3 trillion debt, which exceeds 110% of GDP. To comply with EU budget rules, France must find €110 billion in savings over the next few years. The country's financial woes have raised alarms in Europe, with calls for spending cuts and tax increases to address the situation. The political landscape is tense, with challenges in passing budget reductions and potential social unrest. Efforts to balance the budget are complicated by opposition parties' differing proposals and demands, including protests from police unions and calls for cuts in immigrant spending. The Court of Auditors criticized lavish government spending, adding to the pressure on President Macron's administration. The need to reduce spending while avoiding economic harm poses a delicate balancing act for the government, with the risk of facing sanctions from the EU if deficit targets are not met by 2027. France's financial stability hinges on navigating these challenges effectively to secure its economic future.



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