French economy contracts in third quarter amid rising budget concerns

French economic output shrank unexpectedly in the third quarter, stoking fears of a fiscal crisis.

France recorded an unexpected economic contraction of 0.1% in the third quarter as inflation climbed higher than anticipated. Finance Minister Roland Lescure warned that the country faces severe financial trouble unless lawmakers pass a deficit-cutting budget soon. The downturn increases pressure on the government while nationwide protests loom over planned public spending reductions.

• The figuresGross domestic product fell by 0.1% during the three months leading up to September.
• The warningFinance Minister Roland Lescure stated that the nation faces severe economic peril without immediate legislative action on the budget.
• The contextHigh energy expenses and elevated borrowing costs continue to strain the eurozone second-largest national market.

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