France has started debate on its 2027 budget as high deficits, rising debt and protests increase pressure on lawmakers. Market watchers warn failure to cut the deficit could deepen strain on the euro zone.
01Summary
- 01France's parliament began debate on the 2027 budget on Tuesday.
- 02The country has run one of Europe's highest deficit-to-GDP ratios for nearly a decade under President Emmanuel Macron.
- 03French government borrowing costs are at their highest level in nearly 25 years.
- 04The gap between French and German bond yields has widened, raising questions about possible European Central Bank intervention.
- 05Thousands have protested years of underfunding in public services, especially education.
02Why it matters
France is the euro zone's second-biggest economy, so rising borrowing costs and fiscal strain could affect the wider currency bloc. The budget debate also shows how hard it may be for lawmakers to cut deficits before next year's presidential election.
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