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Why France’s government is on the brink and how debt and politics fuel the crisis

Mounting debt, political deadlock and unpopular reforms have left France teetering on instability, drawing comparisons with Italy a decade ago.

September 03, 2025 / 11:40 IST
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Why France’s government is on the brink and how debt and politics fuel the crisis

France is bracing for another political crisis. Prime Minister François Bayrou is faced with a vote of no confidence on September 8 over his proposal to trim €44 billion ($51 billion) of the budget. Should he fail, he will be the fourth prime minister in 18 months to fall, underlining the chaos afflicting one of Europe's largest economies. President Emmanuel Macron will need to appoint another head of government to keep the state running, the Wall Street Journal reported.

How debt and politics are linked

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France's political instability is also inextricably linked to its financial woes. The nation's debt has grown from €2.2 trillion during Macron's election year of 2017 to €3.3 trillion today. Borrowing becomes more costly and is now approaching that of Italy, a country historically linked with unstable politics and weak finances. Italy has stabilized under Giorgia Meloni, but France is moving toward the same type of dysfunction that has long been the hallmark of Rome and Athens.

Divisions in parliament block solutions