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France's economy is facing turmoil due to a large deficit, rising borrowing costs, and a divided parliament unable to agree on spending cuts. The pandemic and energy crisis exacerbated existing high debt, pushing it to 114% of GDP. Four prime ministers have been appointed in the last year, highlighting the political instability. While not currently in crisis, France needs significant fiscal adjustments, including tax increases or spending cuts, to regain investor confidence and avoid a debt spiral. External bailouts are unlikely, leaving France to tackle its problems independently.

Prepared by Lauren Mitchell and reviewed by editorial team.