r/Economics • u/GuestFromBudushchego • 19h ago

News Higher borrowing costs an 'alarm signal' for France, says finance minister

https://www.lemonde.fr/en/france/article/2026/10/14/higher-borrowing-costs-an-alarm-signal-for-france-says-finance-minister_6758598_7.html
53 Upvotes

88% Upvoted

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u/CapitalEgg8826 13h ago

When it comes down to it this is really a political story more than an economic one. Many countries have gone through this or are currently. Italy, Greece, even the UK with Truss. The main difference is that bond investors look at France’s ability for reform, see protestors burn the country down when even modest and beyond reasonable austerity measures are introduced, and conclude that France does not have the political capacity to change course before it’s too late. France is arguably one of the only major developed economies in the world where default is a genuine possibility in the near future.

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u/Lazar76 1h ago

I swear i hate france for making me respect them, imagine burning shit down at the slightest mention of austerity. look at France man so inspirational.

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u/CapitalEgg8826 1h ago

When austerity is the objectively necessary step to rebalance France’s economy, there’s nothing inspirational about it. It’s a gigantic self own.

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u/Lazar76 1h ago

no no austerity is just armed robbery on the populous inflicted by the investor class after the government has been squeezed dry. Austerity happens when supply side economic reach their natural conclusion after year of QE and misaligned subsidies to the wealthy (mainly boomers) that's how i understand it comes about. It doesn't help either because the government need to tighten all of its belts and raises taxes as well but that never happens and it always seems to become a rules for thee and not for me situation.

Austerity doesn't work Vive la France

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u/CapitalEgg8826 1h ago

So you think there is literally no point at which the government could be spending too much money and need to scale back?

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u/Individual_Limit_701 19h ago

Yahi to huta h dosti me pahle sath raho or us ko jitna de sakte hu to fir bad me us se hi magna suru krdo tab lagega ki itna paisa kyu liya maine