Today France continues to behave as if it enjoyed Sweden's or Germany's public finances, when in truth they are closer to those of Spain. For years France has offered its people a Swedish-style social model of services, benefits and protection, but has failed to create enough wealth to pay for it. French public spending now accounts for 56% of GDP (see chart 1), compared with an OECD average of 43.3%: higher even than in Sweden. The awkward truth is that France, the second-biggest economy in the euro zone after Germany, faces a public-finance squeeze.
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