THE COMPLEXITIES OF THE ECONOMY AND FINANCE - Episode 1. France in financial distress.

@Life & Lingua Code - All rights reserved! Here is the first episode of our intensive program on economics and finance, "THE COMPLEXITIES OF THE ECONOMY AND FINANCE." It provides foundational knowledge on how debt drives a country's economic crisis, using France as a case study. France is facing a critical economic situation: it spends €450 billion annually against €300 billion in revenue, resulting in a €150 billion annual deficit that must be covered by borrowing. The debt service burden (€65 billion in annual interest) is skyrocketing alongside rising interest rates—climbing from under 1% to over 4.5%—and is increasing by approximately €10 billion each year. This item is becoming the largest component of the state budget and could eventually consume all tax revenue. While a state does not go bankrupt, it can default; France has not defaulted since 1797, but that could change.