France public debt hits new record at €2 trillion

Official figures show that France’s public debt has soared to 2 trillion euros for the first time in the second quarter of 2014.

The National Institute of Statistics and Economic Studies (INSEE) reported on Tuesday that the figure is tantamount to more than 95 percent of the country’s gross domestic product.

The European Union rules require the member states to limit their national debt to 60 percent of the GDP.

The administration of President Francois Hollande is under pressure since the public deem its economic plan a fiasco.

Other official reports have also highlighted the zero economic growth and high unemployment rate in the country.

In reaction to the INSEE statistics, the French Economy Ministry stated that the government would successfully halt the debt growth by a drastic reduction in public spending.

Eurozone’s second-largest economy is grappling with an unemployment rate of over 10 percent and its economy has failed to grow in the past two quarters.

A recent poll showed that confidence in President Hollande has nosedived to a record low of 13 percent as a result of the worsening economic crisis.

The austerity measures offered by the Hollande administration have put French citizens under much financial pressure. Sales taxes and retirement taxes have been raised. Massive cuts in social services have also forced households to dip into their own pocket.