Part 7/16:
Over the next decades, France’s public debt ballooned. By 1996, it had reached 60% of GDP, prompting the creation of a social debt repayment fund, intended as a temporary measure but now a long-term burden. France's public debt now surpasses €3.4 trillion—approximately 115% of GDP—the third highest in the Eurozone, trailing only Greece and Italy. The country spends around 2.3% of its GDP solely on interest payments, surpassing what it allocates to national defense.
This debt servicing becomes increasingly fragile as global interest rates rise; about €200 billion in bonds mature annually and must be refinanced at higher rates. Ironically, France now pays more in interest than Greece, a country once synonymous with financial crisis, marking a troubling shift in market confidence.