France's shrinking economy betrays urgent need to overcome budget wrangles

France’s economy contracted by 0.1% in the fourth quarter of 2024, down from 0.4% growth in the previous quarter, as political instability hindered progress on the 2025 budget. The country’s fiscal challenges, including a large budget deficit and increasing debt, have been exacerbated by political wranglings following last year’s snap parliamentary elections. President Macron’s conservative government faced opposition from both the far-left and far-right, leading to its ousting in a no-confidence vote in December after its deficit-reducing budget plans were rejected.

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