Jean-Luc Mélenchon has suggested he could simply wipe out a fifth of the country’s debt held by the Banque de France, sparking warnings that such an economically illiterate government would tank Paris’ credit rating and, in turn, the national economy.
The financial mismanagement of the Macron era, including the overspending and economic stagnation during the coronavirus lockdowns, the energy price surges following the war in Ukraine, and the considerable money spent on social welfare programmes, has seen French debt soar in recent years to over €3.5 trillion ($3.8tn) in the first quarter of this year. This represents 117.5 per cent of France’s Gross Domestic Product (GDP).
Public spending is likely...
Read the full article here
