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What next for France's finances after the government's collapse?

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Without a new budget, the country is facing a deficit of up to 6.6% of the GDP in 2025, more than double the European Union's standard. View on euronews
The article discusses the political and economic implications following the collapse of the French government led by Prime Minister Elisabeth Borne. After President Emmanuel Macron dissolved the National Assembly and called for snap elections, France faces a period of uncertainty regarding its financial management. The article highlights several key points: the potential for a hung parliament, which could complicate budget negotiations and delay necessary reforms; the impact on France's already strained public finances, with a high debt-to-GDP ratio and ongoing deficits; and the possible influence of far-right and far-left parties, which could push for different economic policies. Analysts suggest that this political instability might lead to a delay in implementing crucial economic reforms, potentially affecting France's credit rating and its ability to meet EU fiscal rules. The situation has also raised concerns about France's economic stability, with investors and rating agencies closely watching the developments.

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