With the design of a savings balance presented by Bayrou, a change of course should actually be initiated at France’s galloping public debt. Most recently, the public debt rose to around 114 percent of gross domestic product. France is thus the country in the euro area with the highest debt rate to Greece and Italy.
Now there is a delay and weakening of the savings efforts, which should have negative effects on the interest burden of new government bonds and the French economy. The premier had warned that the repayment payments for the debts were threatened to become the largest budgetary post, even about expenditure on education or defense.
In Brussels, the government crisis is less concerned about the budget. The European Commission had already initiated criminal proceedings last year for excessive debt and fears that the situation could continue to worsen in view of the political situation. The result could then be a renewed loss of trust in the euro zone-even if it is now a significantly more crisis-resistant than in times of the Greece financial crisis.
The upcoming change of government will initially do not change anything to ensure that both countries are closer together after the difficult years under Chancellor Olaf Scholz. Direct effects of the domestic political crisis on cooperation are not expected in Berlin. “The French state will continue to act and will continue to work,” said government spokesman Stefan Kornelius a few hours before the vote. “I think that the ability to act between the two countries is further and the exchange remains tight.”
France supports Ukraine with military means, financially and by training programs for soldiers. In its Ukraine Support Tracker, the Kiel Institute for the World Economy (IFW Kiel) has indicated that France has shown military, financial and humanitarian government aids of around 7.6 billion euros since 2022 to the end of June 2025 – almost 0.3 percent of its gross domestic product. In addition, there is a share of EU subsidies of around 12.1 billion euros. France has also defended its lower contribution compared to other EU countries and Germany by making strategically important weapons for the defense of Ukraine.
