Since Emmanuel Macron dissolved the Assemblée Nationale on June 9, France has been in a state of flux. The focus had been on budget savings for 2025, but the prospect of parliamentary elections has led to a spree of spending by political parties. The upcoming elections have exposed policy platforms that struggle to materialize amidst financial constraints. Despite France’s budget deficit of 5.5% of GDP and a total debt of €3.2 trillion, promises of unfunded spending programs in the billions are being made.
The European Commission plans to open a deficit procedure against France for breaching EU budget rules. The far-right and left-wing coalitions are grappling with conflicting policies and challenges. The ongoing spending competition among parties undermines the country’s credibility and image within the EU.
‘Always more’
The election provides an opportunity for the governing coalition to propose new spending despite previous calls for fiscal restraint. This cyclic approach of excessive spending does not bode well for democracy or economic prosperity. It portrays an image of irresponsibility and shortsightedness in governance.