BusinessFrance's Debt Crisis Raises Concerns Across Europe
France's worsening public finances are causing concern in European markets due to rising borrowing costs, political uncertainty, and contagion fears. The euro dropped below $1.12, its lowest since May 2025, losing about 1.2% this month. France faces a large budget deficit and growing debt, proposing a €54 billion savings plan to reduce the deficit from 5.5% to 5% of GDP next year. Prime Minister Sébastien Lecornu warned the deficit could reach 6.5% without further measures.
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