Part 2/12:
This crisis represents the most significant threat France has faced since 1945. Investors, already wary, are beginning to sell off French debt en masse. The concern is that a default or collapse could catalyze a broader financial catastrophe across Europe.
The Importance of Debt and the Game of Capital
Every nation needs to raise funds through borrowing to support economic growth. In the global economy, capital is always seeking the best opportunities—investing in companies, infrastructure, or even entire countries. Countries with good credit ratings attract investment because they are seen as reliable borrowers; nations with high credit scores can borrow at lower interest rates, boosting growth.