France's parliament begins debate on the 2027 budget Tuesday as high deficits, rising debt and student protests sharpen the political cost of fiscal consolidation.
The euro zone's second-biggest economy is barreling toward a debt crisis, and risks dragging the continent down with it, unless it sustainably brings down its national deficit, according to many market watchers.
Even as thousands take to the streets to protest years of underfunding in public services, particularly education, France has run one of Europe's highest deficit-to-GDP ratios for nearly a decade under President Emmanuel Macron.
Government spending remains well above its peers in the politically sensitive realm of social protections, particularly pensions and healthcare, while tepid economic growth has failed to compensate.
With presidential elections looming next year and parliamentarians proving reluctant to compromise, France's economic and political uncertainty is weighing on the euro.