Business · Economy · 1 hr ago

French debt and political deadlock raise fears of a wider European crisis

French debt and political deadlock raise fears of a wider European crisis

Large student protests took place across France in October, with demonstrators calling for better education conditions and more funding.

The protests come as concerns grow about France’s public debt and large budget deficit.

France’s debt compared with the size of its economy is approaching the level Greece had before its 2010 debt crisis.

France is the European Union’s second-largest economy, and its total debt is far greater than Greece’s was at that time.

The political system appears to lack the will and ability to tackle the deficit, raising fears that France’s problems could affect other countries.

Those concerns are growing as government bond yields in the United States, Japan and the United Kingdom have also risen to levels not seen for decades.

The account raises the question of whether the European Central Bank can contain the risks, but does not say what it will do next.

Sources

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