France faces high risk of financial crisis, economists warn

Nobel laureate Jean Tirole has warned of a high risk of a financial crisis in France, citing structural weaknesses, an uncontrolled budget deficit, and skyrocketing national debt. He suggested that current political responses are inadequate to address the severity of the situation.

Economist Gilbert Cette also addressed the sustainability of the French social model, noting that France struggles to finance its social ambitions because it generates less wealth than its European neighbors. Cette attributed this to lower employment rates, particularly among youth, low-skilled workers, and seniors. To mitigate debt, he recommended increasing employment, fostering the growth of mid-sized companies (ETIs), reducing social spending, and finding revenue sources that do not penalize businesses or employment.