Posted on 12/12/2025 4:51:21 AM PST by MtnClimber
What is now unfolding in France may soon drag the entire Eurozone into deep turmoil. The country is staggering through a fiscal crisis while locked in a political stalemate that seems impossible to break. In the bond market, the clock is ticking loudly as France’s public debt spirals out of control.
This week, Prime Minister Sébastien Lecornu celebrated a textbook Pyrrhic victory. On Tuesday, the National Assembly narrowly approved his draft for next year’s social budget. But the win came at a steep price: sweeping concessions that will only worsen an already explosive fiscal situation.
Strange coalitions
With 247 votes in favor, 234 against, and 93 abstentions, the Assembly passed a plan projecting a €20 billion deficit in the social budget -- significantly worse than the originally planned €17 billion. Marine Le Pen’s party and the far-Left bloc around Jean-Luc Mélenchon both rejected the proposal.
It is surreal: political gridlock has driven France into a place where the far-Left and the Right vote together -- and collectively push the government toward collapse. For President Emmanuel Macron, this could soon mean assembling yet another fragile government, as there is no indication France can lift itself out of its catastrophic stalemate.
The bill now moves to the Senate, where the governing coalition holds a majority. It will likely pass without major obstruction. On December 23rd, the Senate begins negotiations for the 2026 budget. It may provide drama, but no one seriously expects the political blockade to change.
Pension reform on ice -- permanent reform paralysis
Lecornu was forced to freeze the planned pension reform, which would have raised the retirement age from 62 to 64. Instead, France will raise it only to 62 years and nine months. The country maintains the largest social budget in the EU while keeping one of the lowest retirement
(Excerpt) Read more at americanthinker.com ...
Simple......
The falling US$ makes American products more affordable in the export markets.
A falling US$ devalues the US government outstanding debt
The French will be fine, the Muslims will straighten them out.
“If the bank pays 4% and the stores raise prices by 6%, savers lose 2% a year.”
Same as the rest of my 50 years of adult life. I need to make more money to outrun inflation. Fortunately, that’s doable.
Its worse than that. You have to pay taxes on that 4%.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.