On October 6, 2025, the resignation of France’s Minister of Public Accounts, Sébastien Lecornu, has triggered significant political and financial instability, leading to increased borrowing costs and a decline in the euro against the dollar, reports 24brussels.
Lecornu’s departure has raised concerns within France, as the news prompted a rise in borrowing costs, which surpassed those of Italy for the first time, and resulted in a notable decrease of more than half a cent in the euro’s value against the dollar. This political upheaval not only affects France but has also reverberated beyond its borders, indicating the interconnectedness of European economies.
In light of these developments, economist Gabriel Zucman has highlighted that the crisis presents a solvable issue rather than an existential threat to the eurozone. He points to the French public’s substantial private savings and existing assets as critical factors that can help mitigate the financial strain.
“We should not dramatize,” Zucman stated. “France is not at the mercy of its international creditors,” emphasizing a sense of optimism regarding the country’s financial future.
Zucman advocates for taxing the private assets of the ultrarich as a viable solution to France’s budget crisis. He believes that doing so would not only address fiscal challenges but also reflect a fair distribution of wealth within the nation. “It is a problem that financially has a solution and this solution belongs to the French,” he added.
As political tensions rise, discussions of tax reform and wealth redistribution are gaining prominence in public discourse, with an increasing number of voices calling for a reevaluation of economic policies to address the needs of the nation. The current situation in France could set a precedent for how other European nations approach similar fiscal challenges.
