France faces a major economic challenge as its public debt reaches a record level of 3,228 billion euros in the second quarter of 2024. This worrying situation raises questions about the country's financial stability and its long-term economic prospects.
A dizzying growth in debt
French public debt has increased dramatically in recent years. According to the latest figures from INSEE, the country's debt reached 3,228 billion euros at the end of June 2024, or 112% of GDP.
The “whatever it takes” policy put in place during the Covid-19 crisis has left deep traces in French public finances.
Although it made it possible to avoid an economic collapse in the short term, this strategy resulted in a spectacular increase in debt. In just seven years, from 2017 to 2024, debt increased from 2,281 billion to more than 3,200 billion euros.
This trend shows no signs of slowing down. Indeed, in the second quarter of 2024, the debt jumped by 68.9 billion euros, after an increase of 58.3 billion in the previous quarter.
This acceleration reflects the government's difficulty in controlling its spending in a tense economic context, marked by persistent inflation and rising interest rates.
Worrying repercussions on the real economy
The explosion of public debt has concrete consequences on the real economy and the purchasing power of the French. The growing weight of debt service in the state budget limits its ability to invest in key sectors such as education, health or ecological transition.
Furthermore, the country's precarious financial situation makes it more vulnerable to external economic shocks and financial market fluctuations.
The recent tension on French interest rates is a blatant illustration of this. This fragility could ultimately threaten France's economic sovereignty and its ability to pursue independent policies.
French public debt has now reached critical levels, far from the 60% of GDP provided for by European rules. The economic future of France therefore seems uncertain. Although the country has managed to maintain slight growth and a low unemployment rate, the cost of this performance now appears disproportionate.
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