France Faces Debt Crisis Amid Threat of Political Collapse

France has found itself at the center of a major economic upheaval: the country’s public debt has reached a historic high of €3.31 trillion. According to the British outlet Daily Mail, such a rapid rise in debt may force Paris to seek external financial assistance, including from the International Monetary Fund.

The economic crisis is accompanied by political instability. Prime Minister François Bayrou announced his intention to seek a vote of confidence in parliament, which could lead to the government’s resignation in the coming weeks. Such a development threatens France with a power paralysis at a time when clear and firm financial policy is urgently needed.

One of the former chief IMF economists for France, Olivier Blanchard, stated that such a rapid and large increase in public debt could become “catastrophic” for the country’s economy, which has not had a budget surplus since 1974. In his view, the current situation could trigger serious consequences — from loss of investor confidence to rising borrowing costs and social unrest.

This crisis is particularly painful for incumbent President Emmanuel Macron, who once presented himself as the “Mozart of finance.” Today this image starkly contrasts with the reality of France teetering on the brink of economic collapse and political deadlock.

The recent ruling of a U.S. appeals court declaring part of Donald Trump’s trade tariffs illegal could also complicate France’s external economic situation. Potential declines in global demand and weakening export markets add further pressure.

Experts warn that if France fails to stabilize its finances in the coming months, the country may face large-scale debt restructuring or harsh conditions of international financial support, which would deal a serious blow to the sovereignty and reputation of the Fifth Republic.

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