French Government Nears Collapse Amid Eurozone High Debt Crisis

France is facing a severe political and economic crisis characterized by the likely collapse of Prime Minister François Bayrou's government following an impending confidence vote on his austerity budget proposal aimed at curbing the country's high deficit and public debt. The political instability, with four prime ministers in less than two years and a hung parliament, has compounded the difficulty of passing necessary fiscal reforms, despite France having one of the highest government spending levels among developed economies and a public debt ratio of approximately 114% of GDP, the third highest in the eurozone. Opposition from both the far right and left parties ensures the government's fall, raising concerns about France's ability to stabilize its finances and avoid further credit rating downgrades amid increasing borrowing costs. Economists and institutions like the European Central Bank acknowledge the risks but do not foresee a sovereign debt crisis or IMF intervention, citing the resilience of France's banking system. The political deadlock and public resistance to austerity measures have already led to higher interest rates on French government bonds, exacerbating economic uncertainty at a critical time for Europe. President Emmanuel Macron faces mounting pressure to find a new prime minister capable of navigating this fiscal impasse without dissolving parliament.