Paris, 7 September 2025 (dpa/MIA) - Economists were focused on the economic stability of France over the weekend as the government of the key EU country was on the brink of collapse over attempts to tackle its high levels of debt.

At the end of last month, French Prime Minister François Bayrou unexpectedly announced that he would call a vote of confidence in his government in parliament.

All indications are that he will lose the vote, which is expected on Monday afternoon.

How to crawl out of a big debt burden

The key issue is that France spends more than it takes in. Its already high public debt recently rose to around 114% of gross domestic product (GDP). This makes France the country with the third highest debt ratio in the eurozone, behind Greece and Italy.

In absolute terms, France has the largest debt burden in the eurozone, amounting to approximately €3.3 trillion ($3.9 trillion). Additionally, France's public spending is among the highest in Europe.

The current government has plans to change that with an austerity budget that includes savings of €43.8 billion.

The issue has sparked a political crisis, which, if investors lose confidence, could raise concerns about France's economic stability and raise its borrowing costs.

Bayou had warned of exactly such a scenario if France failed to change its debt trajectory across party lines and implement an austerity budget. Currently, there is no majority in parliament to support this.

A recent assessment by US investment bank Goldman Sachs called stabilizing its public debt France's greatest economic challenge.

Photo: epa