France's fiscal crisis warns Australia about unchecked spending
France's debt has hit 120% of GDP, double Australia's 53%, and economists warn Australia risks the same path without honest budget debate.
Hundreds of thousands marched through French cities protesting underfunded schools and crumbling infrastructure. France's public debt has hit nearly 120% of the economy.
It hasn't balanced a budget since 1974. Fuel prices there jumped 36% this year, three times Australia's rise.
Luke Hartigan, an economics lecturer at University of Sydney, said France's welfare state clashed with its money problems. Australia's debt sits at 53% of GDP.
A decade ago it was 40%, and two decades ago just 10%. French public spending accounts for 58% of its economy, compared with 40% in Australia.
Bob Breunig from ANU's Tax and Transfer Policy Institute warned that without honest talk about what government should do and what people will pay for, Australia could follow the same path.
- 120% of GDP
- France public debt
- 53% of GDP
- Australia public debt
- 36% this year
- France fuel price rise
- 58% of economy
- France government spending
Why it mattersAustralia's rising debt and growing demand for government services could follow France's path unless political leaders debate spending limits honestly.
AustraliaAustralia's debt has grown sharply this decade; without reform, rising interest rates, an ageing population, NDIS costs and defence spending could push the country into a fiscal crisis that sparks public unrest.
✓ Claims checked against the source. checked 3 h ago
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