France’s government spending is already among the highest in Europe. Now the country faces weak growth, rising borrowing costs and a budget fight that politicians have struggled to resolve.

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France’s government SPENDING now equals roughly 57% of its entire economy…

That’s higher than the levels shown here for the Soviet Union, communist Romania, Poland, and China.

•⁠ ⁠USSR at 50%
•⁠ ⁠Communist Romania at 42%
•⁠ ⁠Venezuela under Chávez at 38%
•⁠ ⁠Communist Poland at 36%
•⁠ ⁠China at 33%

Will France fall?

Source:
@randgroup
/ Writer: Samuel

France already has one of the most generous social systems in the world.

35-hour legal workweek.

5 weeks of paid vacation minimum.

Universal healthcare, with the public system covering most healthcare costs and complementary insurance often covering much of the rest.

Heavily subsidized education, strong worker protections, unemployment benefits, pensions, family benefits, maternity support and extensive social assistance.

France is already a remarkable example of how far a modern welfare state can go.

Still not enough?

Very few major countries provide this combination of shorter working hours, long vacations, healthcare coverage and social protection.

France’s 10-year OAT yield rose about 8 basis points Monday to around 4.85 to 4.87 percent. The spread over German Bunds widened to about 145 basis points, a two-week high. The CAC 40 dropped more than 1 percent, with banks and real estate leading declines. The euro also weakened. The moves followed Saturday’s protests that turned into widespread looting and arson, with nearly 2,400 arrests. The unrest adds to existing pressure over France’s high debt and the government’s push for a tighter 2027 budget. A key budget vote is expected this week. Yields hit 4.99 percent earlier in October, the highest since 2002. Moody’s is due to review France’s rating Friday.

https://www.cnbc.com/2026/10/19/france-protests-bond-yields-markets.html

https://www.marketscreener.com/news/french-government-bond-yields-rise-on-protests-budget-concerns-treasury-yields-fall-update-ce785cdbd981fe2d

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