How France Became the 'Poster Child' for Sovereign Debt Problems The European Union's second largest economy, France, is on the brink of a full blown debt crisis.
Borrowing costs have reached near 2008 highs, and the country's public finances are in shambles. This development serves as a warning to other developed nations struggling with their own fiscal woes.
France stands out among its peers for its inability to manage its debt and deficits. According to the IMF, the country's gross government debt will reach 118. 5% of GDP by 2026 and exceed 120% in 2027.