It is worse than that. Even their advantages have a downside. Unlike the US most EU countries have exercised good debt management and have long average maturities. A higher for longer scenario is not their friend as debt gets rolled over. #EU #France #debt #deficit
— Jacobo Pascual (@jacobotweetsnow) July 16, 2024
- Current Fiscal Deficit: France’s public deficit was 5.5% of GDP in 2023. This is higher than the government’s target and has raised concerns about fiscal sustainability.
- Public Debt: France’s public debt stood at 110.6% of GDP at the end of 2023. High debt levels can limit the government’s ability to respond to economic downturns.
- Economic Risks: Experts warn that high deficits and debt levels make the economy more vulnerable to future recessions. During economic downturns, government revenues typically fall while expenditures on social services rise, potentially exacerbating fiscal imbalances.