Business · Economy · 8 hrs ago
French unrest puts pressure on debate over public debt
Protests over living costs turned violent in several French cities over the weekend, with reports of looting and a burning town hall in Limoges.
The demonstrations have added to political and social tensions, while President Emmanuel Macron condemned the violence but did not reject the protesters’ original concerns.
France’s public debt is nearly €3.6 trillion, or 119% of GDP, and its budget deficit was 5.1% of GDP in 2025.
Economist Dominic Rohner says the state spends heavily on services, pensions and social support, yet poverty is rising and its room for new measures is shrinking.
He argues France should slow the growth of its debt, using Switzerland’s debt brake as a possible model, and pursue reforms rather than cut education, research or social support.
Higher energy costs, an ageing population and rising interest payments are adding pressure, and Moody’s is due to review France’s credit rating on Friday.
Protests over the high cost of living escalated into violence and looting in several French cities over the weekend.
The unrest has heightened concern about France’s political stability as the country faces high public debt.
France’s public debt is nearly €3.6 trillion, equal to 119% of gross domestic product.
Economist Dominic Rohner says France needs to rein in debt growth and points to Switzerland’s debt brake as a possible model.
The credit rating agency Moody’s was due to review France’s creditworthiness on Friday.
- Who
- Demonstrators in France and economist Dominic Rohner, a professor at the University of Lausanne.
- What
- Protests over living costs turned violent, adding to concern about France’s debt and political stability.
- When
- The demonstrations took place on Saturday and escalated over the weekend. Moody’s review was due on Friday.
- Where
- Several cities in France.
- Why
- The demonstrations began as protests against high living costs. The article also cites high public debt and economic pressures.
This story does not have two clearly opposing sides.
Demonstrations against high living costs began.
Protests escalated into violence and looting in several French cities.
An analyst from Rexecode compared the unrest’s effect on the state deficit to throwing a can of gasoline on a fire.
Moody’s was due to review France’s creditworthiness.
- Public debt
- Nearly €3.6 trillion
- Debt as a share of GDP
- 119%
- State deficit in 2025
- 5.1% of GDP
- State spending in 2025
- More than 57% of GDP
- Debt interest costs
- Around €65 billion
- Moody’s review
- Due Friday
What people are saying
2025, the state deficit was still 5.1 percent of GDP. This alone means that debt continues to rise.
Despite a comprehensive social system, poverty is increasing.
The earlier it succeeds in slowing the rise in debt, the easier the burden will be.
The French economy is suffering from these structural and geopolitical challenges.