The credibility of the French word is at stake. If investors lose confidence in the information provided by the government, this could have dramatic consequences on borrowing rates and worsen the situation.
France is going through an unprecedented budget crisis. The deficit risks slipping by more than 6% in 2024. France is now at risk of bankruptcy, which would drag the entire eurozone into the abyss.
a budgetary effort of 60 billion euros for 2025. Despite this drastic measure, public spending will continue to increase by 2.1%.
The National Assembly's Finance Committee, chaired by Eric Coquerel, is considering transforming itself into a committee of inquiry. The aim would be to understand how such a slip-up could have occurred.
Critics have pointed the finger directly at Emmanuel Macron as the culprit for the debt. The president has reportedly refused to cut some savings measures, particularly for pensioners, for fear of electoral repercussions.
This situation could quickly become untenable and lead to a deterioration in public services.
Financial markets face the bankruptcy of France
Financial markets are beginning to doubt France’s financial strength. The French spread has risen above that of Portugal and Spain. France is now borrowing at 5 years more expensively than Greece, a worrying sign of the perception of its economic health.
France is billions that disappear into thin air, it is the entire effort of a nation that is squandered. It is governments that do not stop destroying what other governments have done to reign better, France is the next country to disappear from the economy.
Rating agencies are closely monitoring the situation. A downgrade of France's rating could have catastrophic consequences for its ability to borrow and the cost of its debt.
This analysis raises questions about the long-term viability of the European Economic and Monetary Union. If France, the second largest economy in the eurozone, were to experience serious difficulties, the entire European edifice could be threatened.
the consequences of European laws on the French are disastrous in addition to the manias of imposing a whole bunch of regulations such as for example the mandatory motorcycle technical inspection which was the main concern of the EU while the country was sinking economically. This famous motorcycle technical inspection which was to be the keystone of the new government while billions were squandered in the four corners of the world on the backs of the French with complete impunity. 🕵🕵🕵♀️🔴
The real problem: pensions
France is the country of economic sanctions: results in a falling birth rate, and not enough young people to pay for pensions. Most French people are not married, or do not even want children, seriously approaching the already very tense situation in China on the one child, so most French people are forced to work very hard to feed the other half of the population who do nothing and are dependent on social assistance.
A significant part of the problem lies in the financing of pensions. Pension spending has increased significantly over the years, from 36.5% of GDP to 57% of GDP.
Unbearable political tension
France is divided in two between the very permissive left and the very austere right; there is no political solution.
The only political solution would be to dissolve all parties so that there is neither right nor left and to declare France bankrupt, as is most certainly what will happen soon.
This raises the question of intergenerational equity. Today’s workers find themselves in a difficult position, having to finance a system from which they may not benefit in the future. Projections indicate that by 2055, pensions could have lost 40% of their value.
the governments that are ruining France:
Despite the urgency of the situation, the government seems reluctant to tackle the problem head-on, fearing electoral repercussions. However, this inaction could make the situation worse in the long term.
The people who have the most civil servants, there are only very few French people who work to maintain the system and pay enormous taxes and duties which are the most enormous of all the taxes in the European Union, all that to feed a population that has jobs paid 6 or 7 times more than most French people: they are civil servants, there is one civil servant for 100 French people.
Accusations of cronyism
are regularly brought against the territorial civil service. The creation of unproductive public sector jobs is singled out as a means of maintaining a form of social peace, to the detriment of economic efficiency.
This situation raises the question of the reform of the State and its structures. A reduction in the number of civil service staff could generate substantial savings, but is encountering political and union resistance.
French people are getting poorer and poorer
The consequences of this budget crisis are beginning to be felt in the daily lives of the French. We are seeing a drop in meat consumption, which some attribute to ecological or health concerns, but which could in reality be the result of financial constraints.
Similarly, the decline in energy consumption, presented as an ecological success, could simply be a reflection of the growing economic difficulties of the population. These developments reflect a deterioration in the standard of living
The bankruptcy of France
The current situation is reminiscent of 2010, when François Fillon declared that he was leading "a bankrupt state". The deficit forecast for 2024 (6.1%) is the highest since that period.
The question now is how far economic chaos can go before revolution breaks out. The sacrifices ahead could be brutal, with significant social consequences.
The Greek experience could provide insight into the social consequences of such a crisis. However, France, as the second largest economy in the eurozone and a major military power, could not be subjected to the same type of external intervention as Greece.
The role of the European Union
The European Union has played a crucial role in maintaining French financial stability over the past decade. The European Central Bank’s policies (printing money), including Quantitative Easing, have allowed France to benefit from historically low interest rates.
France is at a critical juncture. The choices that will be made in the coming months will be decisive not only for the future of France, but also for that of the European Union as a whole. Given the scale of the challenges, a major overhaul of the French social and economic model seems inevitable:
Dismissal of 90% of fictitious jobs in institutions of all civil servants
social welfare cuts
impeachment of the President of the Republic
establishment of a government that will help rebuild France
dismissal of all those who have no connection and no link with what constitutes it and that other countries do not authorize
Removal of external influences which are the serious consequences of this internal destruction.
an inevitable war in France
Although the causes are 100% known, war is inevitable. Its right to remain in the economy is hampered by a dramatic economic and social situation. It risks tipping other countries over with it, which would soon lead to a war to break the links it has with the economic world.
Soon a world without France... 🇨🇵🪦
