France is on track to spend €75 billion on debt interest by 2027—more than its entire education or defense budget. Unlike the US, France can't print euros to inflate away debt, raising the risk of a serious fiscal crisis in the eurozone's second-largest economy.
If France hits the wall, the European Central Bank will face massive pressure to intervene. Any bailout would likely involve large-scale money creation, spreading inflation across the entire eurozone. Every euro holder would effectively subsidize France's spending problem.
If France hits the wall, the European Central Bank will face massive pressure to intervene. Any bailout would likely involve large-scale money creation, spreading inflation across the entire eurozone. Every euro holder would effectively subsidize France's spending problem.
