E.U. Warns France Over ‘Excessive' Deficit, Adding to Political Risks

France’s President Emmanuel Macron faces potential financial penalties from the European Union for failing to control the nation’s growing deficit and debt. The EU’s reprimand, announced recently, adds to the challenges Macron is currently dealing with. The far-right National Rally party and the left-wing New Popular Front coalition are gaining momentum and could form a new government, potentially weakening Macron’s position in power. The opposition parties are critical of EU institutions and aim to ease fiscal policy, while Macron is being forced to make significant budget cuts to improve France’s finances. The country already has a debt of over €3 trillion, or more than 110% of GDP, and a deficit of €154 billion, representing 5.5% of economic output. Macron called for snap parliamentary elections after his party’s poor performance in the European Parliament elections.