Youth protests in France triggered by high inflation and fiscal deficit

French youth are protesting against government policies targeting school meal subsidies and university entrance systems as the national fiscal deficit exceeds 110% of GDP. The unrest follows rising living costs and increased welfare expenditures driven by an influx of millions of immigrants.

Protests centered on high school students in France are being analyzed as more than mere student movements, as they intersect with a national economic crisis. According to analysis provided by Economics Master Kwak Soo-jong, France is experiencing intensifying social conflict due to the dual burdens of severe inflation and a massive fiscal deficit.

Fiscal deficit exceeds 110% as policies target high school students

The French government's fiscal capacity has reached its limit, with the fiscal deficit exceeding 110% of GDP. As the government must comply with strict fiscal rules set by the EU, it has sought measures to reduce the deficit. In this process, policy changes targeting relatively vulnerable areas—such as university entrance systems for high school students and school meal subsidies—were attempted. Kwak Soo-jong analyzed that these government policies triggered backlash from the youth, serving as the starting point for the civil unrest.

High inflation, job shortages, and immigration policy variables

Economic hardship is spreading beyond high school students to general citizens. As high inflation intensifies within France, the burden of daily living costs has increased, showing patterns similar to the civil unrest caused by increases in transportation costs and fuel prices several years ago. For residents in outlying areas who must travel to urban centers to find work, rising transportation costs represent a threat to their livelihoods.

Additionally, immigration policy has been identified as a factor increasing the fiscal burden. With the influx of millions of immigrants, welfare expenditures for them have increased. The analysis explains that because these individuals are unable to participate in middle-class jobs that could contribute to economic productivity, both the government's fiscal burden and social conflict are growing simultaneously.

Concerns of spread across Europe and the importance of national finance

The situation in France is serving as a warning sign for neighboring European countries. Nearby nations, including Spain, Greece, and Italy, are concerned about the possibility of the unrest in France spreading to their own countries. In contrast, Germany is showing a different pattern, maintaining a relatively sound fiscal scale and stable economic policies.

Kwak Soo-jong emphasized that securing tax revenue and increasing the consumption capacity of citizens are essential for the sustainable growth of a national economy. The analysis suggests that the current crisis was created by a complex combination of human and social science factors, including not only the scale of the fiscal deficit but also the decrease in disposable income due to high inflation and job shortages. He added that, citing the past case of South Korea's foreign exchange crisis, various economic variables, such as foreign exchange reserves, must be examined comprehensively rather than looking at fiscal deficit figures alone.

Source: original video (YouTube)