France is witnessing a significant increase in public debt, raising concerns among investors and creating budgetary issues.
Public Debt Level
Currently, France's public debt has reached €3.4 trillion, increasing by €5,000 every second. This dynamic is worrying markets and impacting the borrowing costs for the state.
Market Reactions and Debt Servicing
The 10-year French government bond yield has risen to 3.49%, surpassing similar figures for Spain and Italy. Debt servicing has become the largest budget item, exceeding spending on education and defense.
Criticism of Debt Management
Prime Minister François Bayrou stated that current debt has been used for financing ongoing expenses rather than investments. He emphasizes the need for a more productive use of borrowed funds and has proposed an ambitious savings plan of €44 billion.
The current state of public debt in France creates uncertainty in the markets and questions the country's financial stability, necessitating a serious reassessment of fiscal management approaches.
