France's Unrest Highlights Fiscal Strains as Economists Warn of Long-Term Risks

Key summary

Widespread protests in France involving over 500,000 participants have intensified scrutiny on the nation's fiscal health, with economists noting that persistent deficits and weak discipline could limit public service capacity. France recorded a 2025 deficit of 5.1% of GDP and public debt at 115.6% of GDP, while OECD forecasts growth slowing to 0.7% in 2026 and 0.8% in 2027. High borrowing costs, with 10-year bond yields near 4.9%, and political divisions ahead of the 2027 election complicate efforts to balance spending, taxation, and debt servicing.