France's Debt Time Bomb: Economist Warns Welfare State Unsustainable

French economist Nicolas Bouzou said on [date] that France's main problem is its inability to reduce public debt, warning that the country's economic growth is not strong enough to sustain its welfare state. Speaking in an interview, Bouzou argued that without faster expansion, the current social model is unsustainable.

France's public debt stands at nearly 112% of GDP, one of the highest in the eurozone, while economic growth has averaged around 1% in recent years. Bouzou noted that the welfare state requires robust growth to fund its generous benefits, but France has struggled to generate sufficient momentum. 'Our growth is not strong enough to sustain our welfare state,' he said, adding that debt reduction must become a priority.

The remarks come as President Emmanuel Macron's government faces pressure to rein in spending and meet EU fiscal rules. Ratings agencies have warned of downgrade risks if debt continues to rise. Investors will watch for upcoming budget plans and reform proposals, which could spark political tensions. The debate underscores a broader European challenge: balancing social protection with fiscal discipline in a low-growth environment.