France Latest: Time Is Running Out to Pass Budget

The video discusses the political and economic challenges facing France as it attempts to form a new government capable of passing a budget through a divided parliament. The discussion covers the implications of a special law to roll over the 2024 budget, the impact of credit rating downgrades, and the precarious fiscal sustainability outlook. The potential for an economic crisis is considered, with emphasis on the difficulty of achieving fiscal consolidation and the risks posed by market reactions and wider spreads on economic growth.

What are the long-term risks associated with the current fiscal sustainability outlook in France?

In what ways could wider spreads impact economic growth in France?