Nobel laureate Paul Krugman directly links education spending cuts in France to the generous retirement benefits enjoyed by baby boomers. The average actual retirement age in France was 60.4 years in 2023, the lowest in Western Europe. Students are protesting chronic underinvestment in public education, manifested by a shortage of teachers, run-down classrooms, and buildings not equipped for rising temperatures. On financial markets, French 10-year bond yields reached their highest level since 2002, while the budget deficit is expected to reach 5.4% of GDP and the debt-to-GDP ratio is forecast to rise to 122% next year. Krugman calls this situation fantasy economics, arguing that markets view France as an even bigger risk than other developed economies.
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