A deepening political crisis in France is raising concerns about significant economic consequences. The instability, marked by leadership disputes and legislative gridlock, threatens to undermine investor confidence and delay crucial fiscal reforms. Analysts warn that prolonged uncertainty could slow down public spending, disrupt budget planning, and weaken the country’s economic outlook for the coming year. With key policy decisions stalled, financial markets are reacting cautiously, and credit rating agencies are monitoring the situation closely for potential downgrades. The government faces mounting pressure to restore stability to maintain macroeconomic resilience and uphold its commitments to EU fiscal rules.
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A crisis in French politics… heralds an expensive economic price MSN