French public debt now exceeds that of the USA (France Public Debt)

French Public Debt to Rise to Record 66.1% of GDP This Year

March 17 (Bloomberg) -- France's public debt will rise to a record 66.1 percent of gross domestic product in 2005, more than forecast, as rising unemployment erodes government finances, according to an aide to Finance Minister Thierry Breton.

France yesterday reported to the European Union that its debt will probably rise to 1.117 trillion euros ($1.5 trillion) this year, said the official, who declined to be identified by name. In September, the government forecast debt of 65 percent of GDP this year. Under EU rules, debt shouldn't exceed 60 percent of GDP.

French debt has ballooned along with the deficit as the economy slowed in 2002 and 2003. Unemployment climbed to the highest in five years in January even after the economy expanded by 2.3 percent last year.

``At the moment, the government's top priority is growth and employment, said Maryse Pogodzinski, an economist at JPMorgan Chase & Co. in Paris. The debt is ``a threat to growth in four or five years.''

France, along with Germany and Italy, is pushing to loosen European Union budget rules to enable them to foster economic growth. Germany and France have been over the budget deficit limit of 3 percent of GDP since 2002, and France's debt-to-GDP ratio first surpassed the EU's 60 percent ceiling for in 2003.

Finance Ministry spokesman Benoit Gausseron declined comment on the debt level.

EU Budget Rules

France's public debt last year rose to 1.066 trillion euros, or 65.6 percent of GDP, up from 63.9 percent of GDP in 2003, government statistics office Insee said March 1.

Finance ministers failed to agree on a proposed relaxation of the budget rules on March 8 after clashing over the list of extenuating circumstances that would save high-deficit countries from sanctions. They meet again on March 20 to seek an agreement. If they fail, European leaders may have to come up with a compromise at a summit in Brussels on March 22-23.

The French Finance Ministry forecasts a budget shortfall of 2.9 percent of GDP in 2005, down from 3.7 percent last year, as spending growth is held at the rate of inflation and utilities make one-time payments in exchange for the government assuming their pension liabilities.

Meanwhile, over the Channel in Booming Britain, the UK has the lowest public GDP debt of any G8 nation, with debt FOUR TIMES lower than in France.

I can't imagine why....

There is all sorts of unstability over there. All it would take is one country to back out of the EU and the Euro will tumble.

That is what makes the Euro unstable and other nations cautious about using it.

England is not to happy with the EU as they are putting the most into the EU and getting the least back. All that wealth is going elsewhere during their booming economy. They are enjoying one of their best economies in years and are watching all of it flow across the channel. I can see why they would be upset.

The EU is a good idea IF it works. We need another rather stable entity out there, and they could be it.

A UA would be nice to see too. (United Africa) But their to busy chopping up each other over there.

The EU will be as stable as the UA, minus the chopping.

They find other ways to chop. I like how the Europeans scoffed at the idea of the EU being their Representing Country in the Olympics. An Englishman said...

"I will never wrap myself in an EU flag over the Union Jack"

That says a lot.

EagleSmack, what do you mean with ".. they [the UK] are putting the most into the EU and getting the least back"? Relatively speaking, on the financial level, it is the Netherlands giving the most and receiving the least. That's why I would like to see you clear that up.

He's just trolling for reaction because people dare to criticze the US, Ricky. You'll get used to him after a while.

There's no getting used to it Rick the guys a

Of coarse that’s it, because he certainly isn't allowed his own opinion…

His reputation precedes him, Jay.

I was responding to an article that was posted.

Is this not a personal attack?

Thanks

You can attack me but i can't return the favor eh?I'm done with you .

Please.... please be done with me.

Oh fer F*** sakes.