France Latest: Time Is Running Out to Pass Budget

The video discusses the political and economic challenges facing France as it attempts to form a new government capable of passing a budget through a divided parliament. The discussion covers the implications of a special law to roll over the 2024 budget, the impact of credit rating downgrades, and the precarious fiscal sustainability outlook. The potential for an economic crisis is considered, with emphasis on the difficulty of achieving fiscal consolidation and the risks posed by market reactions and wider spreads on economic growth.

What is the main challenge faced by the new Prime Minister in forming a government?

• Reducing unemployment rates

• Increasing the GDP growth rate

• Improving international relations

• Passing a budget through a divided parliament

What is the expected deficit as a percentage of GDP for 2025?

• 6.1%

• 4.8%

• 5.4%

• 5.0%

Which credit agencies have issued warnings about France's fiscal sustainability?

• Moody's, DBRS, and Fitch

• Standard & Poor's, Fitch, and DBRS

• S&P, Moody's, and DBRS

• Moody's, Fitch, and S&P

What is the potential debt to GDP ratio for France by 2029?

• 124%

• 115%

• 130%

• 120%

What is the estimated impact of wider spreads on economic growth next year?

• 0.5% to 0.7% of GDP

• 0.3% to 0.5% of GDP

• 0.1% to 0.2% of GDP

• 0.7% to 1.0% of GDP