France National Debt

The countries of the European Union are generally heavily in debt. In this article, we look at the France national debt and what the French debt means for the country economically.

France is a major player in the European Union, a real driving force politically. That being said, the country is not a particularly impactful economic force. It has a socialist democracy form of government with a lot of emphasis being placed on the socialist aspect of the phrase. The government provides tons of benefits to its citizens, but doesn’t collect near enough in taxes to support those benefits. This is why the French debt level is a bit out of control.

French Debt Levels

French debt levels come in at about 83 percent of the gross domestic product of the country. Anything above 65 percent has traditionally been considered moving into the danger zone, but these days 83 percent looks pretty good compared to other countries. This is particularly true when you consider the efforts France has put in to helping other European Union countries weather the financial crisis.

Pension Reform

One reason that France’s debt is high, but not as high as you might expect is pension reform. The legendary system in the country was reformed in 2010. The changes spurred riots and civil unrest on a large scale, but nipped in the bud a major financial problem that was just around the corner. France will probably have to do even more in this area, but the reform presents an interesting foreshadowing of what may happen in the United States.

Preview?

The United States has a huge national debt problem. Much of this is attributed to entitle programs. When cutbacks are made in Social Security and medical care, and they definitely will be, the reaction of millions of Americans is going to be very interesting to watch. The notion that there will be civil unrest and full blown riots is not only a legitimate thought, but a probable outcome.

The France debt levels are more than a bit high compared to traditional indicia, but not in a modern context. The country could do better, but given the benefits it provides its citizens, it seems doubtful things could be better given the global economic situation.

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