France could be about to crash the global economy
Unsustainable debt and a lavish welfare system risk triggering a run on banks
Matthew Lynn, Bloomberg
31 August 2025 4:00pm BST
C’est normal, as they would put it on the other side of the Channel. The Government is teetering on the edge of collapse, the budget is out of control, there are emergency tax rises on the way and the rioters are gearing up for protests on the streets.
For France, it is all pretty much business as usual.
Yet this could turn into far more than just a political drama in Paris. With worries about government debt and the affordability of lavish welfare systems rising all the time, France could be about to trigger a full-blown market crash.
It will be a month of high drama in Paris. François Bayrou, the prime minister appointed earlier this year by Emmanuel Macron to pass a budget that at least makes some attempt to bring the deficit under control, has called a vote of confidence for Sept 8.
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Bayrou closes debate as vote on confidence in his government about to get under wayWe’re nearing the end of the debate, and Bayrou is now back speaking from the podium.
He calls out some of the more radical language in the debate, thanks his ministers, and reiterates some of the main points from his earlier speech saying it’s “a moment of truth” – but this is unlikely to make aby substantial difference at this stage.
We will now go ahead with the vote, which is expected to take 30 minutes, and will close 6.50pm local time (5.50pm UK).
Guardian |
