How will France finance its external deficit?
France’s external deficit has gradually deteriorated over the past 20 years and is now at a worrying level. The question of how to finance this external deficit will therefore increasingly arise. If France’s attractiveness for companies is low , international equity or direct investment capital will not flow to France. Given the level of interest rates, international investments in government bonds are discouraged . It is well known that there are no longer any interbank capital flows between euro-zone countries. There is, therefore, a risk that France will run into an external financing problem in the future.