Editing Economy of France (section)

=== National debt ===

The Government of France has run a [[budget deficit]] each year since the early 1970s. As of 2021, French government debt reached an equivalent of 118.6% of French GDP.<ref>{{Cite web|url=https://www.imf.org/external/datamapper/GGXWDG_NGDP@WEO/OEMDC/ADVEC/WEOWORLD/FJI/COL/FRA|title=World Economic Outlook – General government gross debt|website=imf.org|access-date=1 February 2021|archive-date=21 May 2021|archive-url=https://web.archive.org/web/20210521023916/https://www.imf.org/external/datamapper/GGXWDG_NGDP@WEO/OEMDC/ADVEC/WEOWORLD/FJI/COL/FRA|url-status=live}}</ref>

Under European Union rules, member states are supposed to limit their debt to 60% of output or be reducing the ratio structurally towards this ceiling, and run public deficits of no more than 3.0% of GDP.<ref name="france1">{{cite web|url=http://www.france24.com/en/20120928-french-debt-jumps-minister-promises-meet-deficit-target|title=French debt jumps, minister promises to meet deficit target|date=28 September 2012|publisher=FRANCE 24|access-date=27 November 2012}}{{dead link|date=December 2017|bot=InternetArchiveBot|fix-attempted=yes}}</ref>

In late 2012, [[Credit rating agency|credit-rating agencies]] warned that growing French government debt levels risked [[List of countries by credit rating|France's AAA credit rating]], raising the possibility of a future credit downgrade and subsequent higher borrowing costs for the French government.<ref>{{cite news |last=John |first=Mark |url=https://www.reuters.com/article/us-france-debt-idUSBRE89P0SO20121026 |title=Analysis: Low French borrowing costs risk negative reappraisal |work=Reuters |date=26 October 2012 |access-date=27 November 2012 |archive-date=2 May 2013 |archive-url=https://web.archive.org/web/20130502014859/http://www.reuters.com/article/2012/10/26/us-france-debt-idUSBRE89P0SO20121026 |url-status=live }}</ref> In 2012 France was downgraded by ratings agencies [[Moody's Investors Service|Moody's]], [[Standard & Poor]]'s (S&P), and [[Fitch Ratings|Fitch]] to an AA+ credit rating.<ref>{{cite news | url=https://www.bbc.co.uk/news/business-16552623 | work=BBC News | title=France loses AAA rating as euro governments downgraded | date=13 January 2012 | access-date=21 June 2018 | archive-date=22 September 2021 | archive-url=https://web.archive.org/web/20210922233003/https://www.bbc.co.uk/news/business-16552623 | url-status=live }}</ref><ref>{{cite news | url=https://www.bloomberg.com/news/2013-07-12/france-loses-top-credit-rating-as-fitch-cites-lack-of-growth.html | work=Bloomberg | first=Mark | last=Deen | title=France Loses Top Credit Rating as Fitch Cites Lack of Growth | date=12 July 2013 | access-date=6 March 2017 | archive-date=22 February 2014 | archive-url=https://web.archive.org/web/20140222154216/http://www.bloomberg.com/news/2013-07-12/france-loses-top-credit-rating-as-fitch-cites-lack-of-growth.html | url-status=live }}</ref>

In December 2014 France's credit rating was further downgraded by Fitch and S&P to AA.<ref>{{cite news|last1=Deenpattern dots|first1=Mark|title=France's Credit Rating Cut by Fitch to 'AA'; Outlook Stable|url=https://www.bloomberg.com/news/articles/2014-12-12/france-s-credit-rating-cut-by-fitch-to-aa-outlook-stable|website=Bloomberg.com|publisher=Bloomberg|access-date=12 March 2015|date=12 December 2014|archive-date=21 May 2021|archive-url=https://web.archive.org/web/20210521023919/https://www.bloomberg.com/news/articles/2014-12-12/france-s-credit-rating-cut-by-fitch-to-aa-outlook-stable|url-status=live}}</ref>

Macron, shaken by pension protests, vowed in May 2023 to build factories, boost job creations and make France more independent.<ref>{{cite web |date=15 May 2023|title=Macron vows to build back factories, boost France's economy shaken by pension protests|website=[[Associated Press]] |url=https://apnews.com/505393a2371e6bfd4714ddbbbed25ff1}}</ref>

The Government of France experienced a significant shift in its [[bond market]] position on September 26, 2024, when its bond yield surpassed that of [[Spain]] for the first time since 2007.<ref name="bloomberg"/> The yield on 10-year French bonds reached 2.97%, slightly exceeding the yield on Spanish bonds of similar maturity, despite France's typically higher [[credit rating]].
This development raised concerns among investors about France's ability to manage its [[public finances]] effectively. France's bond yields were reported to be higher than those of [[Portugal]] and approaching levels seen in [[Italy]] and [[Greece]], countries traditionally viewed as having higher economic risks in the [[Eurozone]].<ref name="bloomberg">{{Cite web|url=https://www.bloomberg.com/news/articles/2024-09-26/france-s-bond-yield-surpasses-spain-s-for-first-time-since-2007|title=France's Bond Yield Surpasses Spain's for First Time Since 2007|website=Bloomberg News|date=September 26, 2024|access-date=September 26, 2024}}</ref>

Furthermore, France faces a [[budget crisis]] in 2024, with the deficit at risk of exceeding 6% of GDP, significantly higher than the previous government's estimate of 5.1%. Newly appointed Finance Minister [[Antoine Armand]] and Budget Minister [[Laurent Saint-Martin]] pledged to focus on [[government spending|spending cuts]] before considering [[tax]] increases to address the fiscal shortfall. Prime Minister [[Michel Barnier]] was tasked with finalizing the 2025 budget within days, amidst pressure to present realistic plans for deficit reduction.<ref>{{cite web |title=Stepping into budget crisis, French ministers pledge spending cuts |url=https://www.reuters.com/markets/europe/france-could-get-deficit-eu-limit-five-years-says-bank-france-head-2024-09-25/ |website=Reuters |date=26 September 2024 |access-date=27 September 2024}}</ref>