What changed
FRANCE IS A MESS.
THE BANK OF FRANCE IS PREPARING TO CUT ITS 2026 GDP GROWTH FORECAST AFTER THE ECONOMY UNEXPECTEDLY CONTRACTED IN THE FIRST QUARTER. THIS YEAR'S GROWTH IS NOW EXPECTED TO COME IN AT JUST 0.6% TO 0.7%.
MEANWHILE:
- DEBT-TO-GDP STANDS AT 116% AND IS STILL RISING.
- FRANCE RUNS A STRUCTURAL BUDGET DEFICIT OF 5% OF GDP OR MORE.
- SOCIAL WELFARE COSTS ARE A WHOPPING 30% OF GDP.
- INTEREST EXPENSES ARE EXPLODING AS YEARS OF ULTRA-LOW RATES ARE REPLACED BY MUCH HIGHER BORROWING C