France’s government collapse plunges the economy deeper into growth struggles and high debt. The rejection of Prime Minister Francois Bayrou’s budget plans leaves France facing challenges in reducing its deficit. The next government, less ambitious than Bayrou, may rely on tax hikes to cut the deficit. Financial markets are wary of tax increases impacting growth. With debt reaching 114% of GDP, slow growth is a concern. France’s bond market faces scrutiny, paying higher risk premiums on its debt. The country’s economic future remains uncertain amid political deadlock.

Read more at Yahoo Finance.: Analysis-Crisis-prone France sinks deeper into debt quagmire