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France Faces Debt Crisis: Government on the Brink

by Priya Shah – Business Editor

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france-fiscal-crisis-20250828"> France faces a potential government collapse over proposed austerity measures as the nation grapples with mounting public debt. Prime Minister Bayrou has called for a vote of confidence.">

France ‌on ‌the ⁣Brink: Government Faces Collapse Amid Debt Crisis

Paris, France – August 28, 2025 – France ‍is facing a important‍ political and economic crisis as ‌Prime Minister François Bayrou has staked the survival ⁣of his ⁤government on a vote of confidence‍ scheduled for September 8th. The move ‍comes after Bayrou warned that France is on the brink⁤ of over-indebtedness, announcing plans to cut €44‌ billion (approximately $51 billion) from next ⁣year’s budget-equivalent to​ 2.6% of total spending-to address ‍a⁤ national debt that currently stands at 114% of‌ GDP.

The proposed austerity measures⁣ have ignited​ fierce opposition from across the political ​spectrum, with both left-wing ​and right-wing populists vehemently ‍rejecting the cuts. Bayrou’s minority government lacks a secure majority in parliament, making the passage of the budget-and his continued leadership-highly uncertain. should the vote fail, France will likely see its⁤ third prime minister in just over a year, potentially destabilizing the Eurozone

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