Paris faces another turmoil: repercussions following the collapse of the administration

France, a key supporter of Ukraine, has pledged significant aid to the war-torn nation. The country has committed around 7.6 billion euros from 2022 to June 2025, and an additional 12.1 billion euros in EU aid, according to recent reports. However, France's own financial situation is causing concern.

The highest debt-to-GDP ratio in the Eurozone currently belongs to France, standing at around 114 percent, surpassed only by Greece and Italy. This debt burden could soon become the largest budget item, even before education or defence, as warned by the prime minister.

Prime Minister François Bayrou's draft budget aims to address this issue, but his tenure may be short-lived. With the impending government change, Bayrou is expected to lose a confidence vote and resign, leaving President Emmanuel Macron to appoint a new prime minister. This transition, however, could prove challenging due to a fragmented parliament with no clear majority.

The political instability in France could potentially worsen the situation, leading to renewed loss of confidence in the Eurozone. This uncertainty could delay budget plans and push foreign policy, including Ukraine aid, into the background.

The European Commission is already expressing concern about France's budget situation, initiating an infringement procedure due to excessive new debt. There is a risk of delay and weakening of austerity efforts, which could negatively impact the interest burden of new government bonds and the French economy.

As France's influence wanes, the role of Germany as a key partner for Ukraine becomes increasingly important. With the USA continuing to withdraw its support for Ukraine, Germany, under Federal Chancellor Friedrich Merz, is poised to take on more responsibility in terms of weapons deliveries and financial support.

The political climate in France could have far-reaching implications, not only for the Eurozone but also for Ukraine and its struggle for peace. As the situation unfolds, it will be crucial to monitor the impact of France's domestic politics on its international commitments.

Paris faces another turmoil: repercussions following the collapse of the administration