France slides down EU per-capita wealth list

Historically one of Europe's heavyweight economies, France has continued its slide down the wealth rankings within the European Union, and is now in the bloc's "second tier" by income, with fresh Eurostat data showing it below the EU GDP per capita average for a third consecutive year.

Some commentators have warned that France is slipping toward "thirdworld status" as the decline shows no sign of reversing.

Wealth per head in France is now beneath that of Cyprus, figures published this week show, with the country also falling further behind northern economies while the bloc's eastern member states are closing the gap. According to the Organisation for Economic Co-operation and Development, Poland could overtake it within a decade.

With the EU average set at 100, Germany comes in at 116, the United Kingdom at 99 and France at 98, according to Eurostat. Smaller states Luxembourg and Ireland remain outliers, with percapita GDP more than double the bloc's benchmark, and Italy has effectively drawn level with France on a purchasingpowerparity basis.

The numbers are all the more notable as the EU as a whole continues to lag the United States in economic heft, analysts say. The figures have prompted a wave of despair among critics, particularly on the right.

Writing in French newspaper Le Figaro, former senior civil servant Nicolas Baverez delivered a stark verdict: "Our country has become the Argentina of Europe. France is shut in an infernal spiral that is leading it to third-world status."

The 2026 budget, approved by France's Parliament on Monday, gives scant comfort to advocates of tighter public finances.

Instead of cutting outlays, Prime Minister Sebastien Lecornu's government chose to hike taxes, tacking on 6.5 billion euros ($7.6 billion) for highincome households and 7.3 billion euros in additional corporate levies.

State expenditure, already above 1.7 trillion euros and among the highest in advanced economies as a share of output, is set to rise by another 38 billion euros this year.

Frederic Douet, a law professor at the University of Rouen–Normandy, argued that Lecornu is returning to policies that previously failed.

In his column for Le Figaro, he said: "The slow pauperization of France is a consequence of policies that are as costly as they are inefficient. The mantra of our technocrats and politicians is that tax rises resolve our problems."

The Socialist Party, which won major concessions from Lecornu, including a halt to pension changes, has effectively steered the budget agenda, reported The Times newspaper.

Lecornu himself has conceded he heads France's weakest government in decades, after weathering an unusual episode that saw him step down in October, just a month into the job, before being reinstated a week later.

His two predecessors were toppled amid budget battles, a consequence of President Emmanuel Macron's 2024 snap elections that left the National Assembly without a majority.

jonathan@mail.chinadailyuk.com