France is currently navigating a complex economic landscape characterized by a national debt at 114% of GDP and a budget deficit of 5.8% of GDP. Government spending and tax receipts are among the highest globally, which raises questions about the apparent decline in public services. Citizens have expressed concerns regarding labor shortages in healthcare, the closing of rural train lines, and insufficient resources for public universities, particularly in light of increasing urbanization from 76% to 82% over the last 25 years.
The labor shortage in healthcare has been exacerbated by restrictions on medical school admissions, which were only lifted in 2020. Rural communities report a decrease in services, and maintaining services for declining populations would necessitate higher spending per capita compared to urban residents. A growing sentiment among the French public favors decentralization to address these disparities.
Despite significant spending on public services, there are widespread perceptions of dissatisfaction, contributing to unsustainable levels of debt and deficit. Possible explanations for this situation vary. The far-right attributes issues to immigration, while centrist proposals include incremental cuts to find €44 billion in savings. The left advocates for increased taxation on wealth, though this approach may impact small business owners adversely.
Notably, a significant portion of discretionary spending, about €211 billion annually, is allocated to subsidizing businesses to create jobs. This method of intervention has resulted in a rigid labor market with high unemployment rates compared to the EU average. Discussions on alternative approaches, such as implementing a Danish-style “flexicurity” system, raise questions about potential reallocations of these funds towards health, education, and renewable energy.
As the European Union faces challenges in a global power-centric context, the need for serious dialogue about fiscal strategies and public investments is crucial. France’s ability to influence EU policies may depend on strengthening its economy and engaging in constructive discussions on long-term solutions.
Source: https://www.theguardian.com/commentisfree/2025/sep/02/france-debt-crisis-business-government-collapse-austerity