France's welfare-state promises are colliding with a bill that keeps getting bigger. Far-left radicals rioting, fiscal crisis, and political uncertainty are exposing the upper limits of a system built on handouts, heavy taxation, uncontrolled borrowing, and mass migration.
For American voters heading into the midterms in the next several weeks, the warning from France is worth considering as far-left Democratic Socialist of America gains power within the Democratic Party: Promises of more and more and more government handouts come with consequences, just as France is finding out the hard way today.
As President Emmanuel Macron ends his term in crisis, right-wing Marine Le Pen is positioning herself as the savior candidate as France's finances rapidly deteriorate.
Her shadow budget proposes shrinking the deficit to 3.7% of economic output next year, well below the government's 5% target, before bringing it to 2.2% by 2032. Savings would come largely from spending cuts, lower transfers to the EU and reduced migrant spending.
The proposals come as high uncertainty clouds the political landscape and deteriorating public finances drive up France's borrowing costs. Le Pen has warned that maintaining the current spending trajectory risks a default crisis.
it's been a while since we had a European sovereign debt crisis *FRANCE-GERMANY 10-YEAR YIELD SPREAD WIDENS 8BPS TO 135
