In France, there is not only a political, but also a financial and economic crisis, which are growing into a social one. The most worrying is the financial situation in the country. There is a serious danger that France will become the epicenter of a debt crisis in Europe. The danger of a domino effect is great. This is what Meglena Plugchieva told FOCUS.
She is a former deputy prime minister for European funds, a member of parliament in three parliamentary constituencies and deputy minister of agriculture and forestry, a long-time ambassador to Germany, Switzerland, Liechtenstein and Montenegro.
The resignation of François Bayrou and the appointment of the new prime minister Sébastien Lecornu by President Emmanuel Macron will not lead to a resolution of the crises, she added. The mood in the debates on the country's budget for next year is not for spending cuts and reforms, which are needed. "The problems accumulated over the years - overly inflated social spending, migration problems, a shrinking economy and debts reaching 114% of GDP, speak of a very worrying picture", Plugchieva pointed out.
France's problems are a warning to the entire European Union and the entire eurozone, she noted. Italy, Spain, Portugal, Greece, Belgium are also in serious public debt. "There is no country in the eurozone that does not have problems and difficulties. This is the big problem that should concern us too", Plugchieva added.
For the third year in a row, Germany is in recession. If Chancellor Merz's stated intention to make this autumn an autumn of reforms does not come true, the forecasts for Germany are not good at all, the diplomat believes.
Plugchieva recalled that the expectations for Chancellor Friedrich Merz were that he would initiate reforms to stabilize the economy. "Instead, he appears more as a chancellor of foreign policy. The topics with which both he and President Macron shine on the European stage are defense and security, aid for Ukraine, "Coalition of the Willing", but almost nothing is heard about saving the economy, reducing unemployment, bureaucracy, stabilizing the economy", she commented.
Germany has an unprecedentedly high external debt. The expectations for 2026 are that the country will also exceed the budget deficit of 3%.
"The heart of the German economy – automotive industry, is in a very difficult situation – losses in markets, reduction in production, reduction in profits, job cuts“, Plugchieva pointed out.
According to her, Germany is suffering great losses due to bureaucracy. Over 1,700 laws and over 52,000 regimes, norms and restrictions burden business. “This, combined with large social costs, without any development of the economy, creates a worrying situation for the development of Germany. This creates a problem for the entire eurozone“, added Meglena Plugchieva.
Today, regional elections are being held in the most densely populated German region – North Rhine-Westphalia. – The forecasts were not good at all. The latest public opinion polls showed that “Alternative for Germany“ continues to receive support. Recent surveys have shown that at the federal level there is an equalization of support for "Alternative for Germany" and for the CDU-CSU. These should be signals for a correction in policies in order to have the corresponding results," the diplomat added.