France faces a critical budget vote on Tuesday amid violent protests over the cost of living, record public debt, and political gridlock, with analysts warning it could be forced to seek IMF assistance.
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01Summary
- 01Nationwide protests over the high cost of living turned into riots on Saturday, with luxury boutiques looted and public buildings set on fire.
- 02France's public debt is a record $4 trillion, or 119% of GDP, the highest since World War II.
- 03Prime Minister Sebastien Lecornu faces a critical budget vote in the National Assembly on Tuesday to reduce the deficit to 5% of GDP from 5.4%.
- 04Analyst Mujtaba Rahman of Eurasia Group warned that failure to pass the budget could force France to seek help from the IMF and the European Central Bank.
- 05Far-right leader Marine Le Pen has vowed to lower the retirement age to 62, while far-left candidate Jean-Luc Mélenchon proposes cancelling French debt held by the central bank.
02Why it matters
France's deepening debt crisis could trigger a financial meltdown similar to Greece's, raising borrowing costs and threatening the stability of the eurozone's second-largest economy.
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