European media's fascination with the burgeoning US debt bubble, expected to hit a staggering $35 trillion, often overshadows their own fiscal woes. However, closer examination reveals that Europeans should focus on domestic matters first.
In France, for instance, the public deficit for 2023 widened to 5.5% of GDP, up from 4.8% in 2022, surpassing the government's target of 4.9%. It's evident that the current year's projections will likely fall short of reality.
France's public debt witnessed a modest decline by the end of Q4 2023, standing at 110.6% of the Gross Domestic Product (GDP). This marks a marginal decrease from the previous year's Q4 figure of 111.9%. However, it falls slightly short of the government's ambitious target of 109.7% for 2023. The incremental progress hints at the nation's ongoing efforts to stabilize its fiscal standing amidst economic uncertainties.
Amidst Europe's recessionary woes, the debt trap is tightening its grip, necessitating a shift in attention. Expect further diversions, especially from the European Central Bank struggling to defend interest rate spreads.