At a time when the cost of servicing sovereign debt is rising globally, France stands out as an especially fragile case. Its public debt-to-GDP ratio is edging up toward that of Greece on the eve of its sovereign-debt crisis, and the French political system seems unable to do anything about it.
WASHINGTON, DC—In 2010, a Greek sovereign-debt crisis roiled world financial markets. Now, France threatens to do the same, but on a larger scale. Not only is its public debt-to-GDP ratio edging up toward that of Greece on the eve of its crisis, but the French political system seems unwilling or unable to address the country’s gaping fiscal deficit.
