Edward Conard

Top Ten New York Times Bestselling Author

  • “…a must-read for serious students of economic policy.” - Glenn Hubbard, Dean, Columbia Business School, and former Chairman of the Council of Economic Advisers
  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
  • “Unintended Consequences provides a provocative interpretation of the causes of the global financial crisis and the policies needed to return to rapid growth. Whether you agree or not, this analysis is well worth reading.” - Nouriel Roubini, New York University; Chairman, Roubini Global Economics
  • “…serious thinking for serious thinkers. …a thought-provoking blueprint for growing middle- and working-class incomes.” - Mitt Romney, former Governor of Massachusetts
  • “Unintended Consequences represents the most cogent and persuasive analysis of the Financial Crisis to date.” - Andrei Shleifer, 1999 John Bates Clark Medal Winner
  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
  • “…challenges misconceptions that distort our economic debates.” - Arthur Brooks, President of the American Enterprise Institute
  • “Unintended Consequences is far smarter and more thought-provoking than most economics written for the general public” - Greg Mankiw, Harvard University, Former Chairman of the Council of Economic Advisors
  • “Unintended Consequences is full of substance, it is one of the must-read books of the year, and once I finish it I will be giving it a second read through right away.” - Tyler Cowen, Professor, George Mason University
  • “There are an amazing number of good ideas and interesting points made in Unintended Consequences. The thinking underlying it, and the obvious depth of understanding of the author, are very impressive.” - Steven Levitt, coauthor of Freakonomics; 2004 John Bates Clark Medal
  • “Unintended Consequences offers deep and well-argued analyses on almost every issue.” - The New York Times
  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
Upside of Inequality Oxford Unintended Consequences

AI Summary. France plans to narrow its budget deficit to 5% of GDP by cutting state spending, capping increases to pensions and civil servant salaries, and raising taxes. Deteriorating public finances have left France borrowing at higher interest rates than Italy and Greece, with 10-year bond yields reaching their highest since 2002.

Leila Abboud and Ian Smith Financial Times
Date Posted:

The French government has proposed €43B in spending cuts and tax increases for 2027, in an effort to reduce the deficit to 5% of GDP from a projected 5.4% in 2026.

Can capping pensions and public salaries shrink a widening budget deficit?

Core argument: France’s government under Prime Minister Sébastien Lecornu aims to narrow the deficit to 5% of GDP next year by cutting state spending, capping increases to pensions and civil servant salaries, and raising taxes.

The government of Prime Minister Sébastien Lecornu said it aimed to narrow the deficit to 5% of GDP next year by slashing state spending, capping increases to pensions and civil servant salaries, while raising taxes. The French deficit is on track to rise to 5.4% of GDP this year, after a deterioration in its public finances that has led to France borrowing at higher interest rates than Italy and Greece. France’s 10-year bond yields reached as high as 4.96% on Thursday, their highest point since 2002, as a global bond rout was exacerbated by investor concerns over the country’s fragile public finances. But they later fell back to 4.93% in choppy trading.

Takeaways by Macro Roundup® AI

  1. France’s government under Prime Minister Sébastien Lecornu aims to narrow the deficit to 5% of GDP next year by cutting state spending, capping increases to pensions and civil servant salaries, and raising taxes.
  2. The French deficit is on track to rise to 5.4% of GDP this year, following a deterioration in public finances that has left France borrowing at higher interest rates than Italy and Greece.
  3. French 10-year bond yields reached 4.96%, their highest since 2002, as a global bond rout was exacerbated by investor concerns over France’s fragile public finances, before falling back to 4.93%.

Related Articles:

  • The Bond Market Reckoning Has Only Begun — The gap between French and German 10-year government bond yields has widened at a pace matched only during the euro zone sovereign debt crisis. France and the UK have less room than the US to close deficits with tax increases, as tax revenues equal 43.9% of GDP in France and 35.3% in the UK versus 25.2% in the US.
  • Soaring Bond Yields, Gaping Deficits and Towering Debts: What Could Go Wrong? — An analysis of 22 rich countries estimates that if each refinanced its entire debt at current five-year bond yields, Britain would need the largest primary surplus to stabilize its debt-to-GDP ratio, about 1.5%, followed by Italy at 1.4%, France at 1.2% and America at 1%.
  • Global Debt Report 2026 — Gross central government borrowing across OECD countries rose 7% to a record $17tn, about 23% of GDP, and is projected to reach roughly $18tn, or 24% of GDP. The United States and Japan account for close to 80% of the area's refinancing requirements, with the US share rising from 57% to 70%.
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