The French economy, while still recovering from the COVID-19 crisis, is currently dealing with special problems that have emerged due to the new geopolitical situation. Signs of weakness in the French economy at the beginning of the year may turn into an actual recession in 2023. The latest forecasts are particularly pessimistic in this regard. Since Russia has terminated its oil and gas deliveries after the sanctions imposed by the European Union, the French economy is at risk of serious inflation issues. Delivery interruptions can have significant negative consequences for France primarily due to their indirect impact resulting from the influence on its neighbor, Germany. The inflation that has hit the French economy and other economies of the European Unions is a kind of inflation caused by deficit rather than excessive demand. The French government, which spent considerable amount of money to protect people and businesses during the COVID-19 crisis, is faced with the need to provide significant assistance again. Both fiscal and monetary policy will be disrupted. A sharp increase in public debt is also expected. France has encountered an unprecedented economic situation, when the rules of a market economy seem powerless in the face of incoming problems. Economic planning, similar to the one that was used from 1946 to the end of the 1960s, probably represents the best opportunity for the French economy to adapt to the consequences of the new geopolitical situation
Keywords
uncertainty, inflation, growth, shortage, household expenses, administrative expenses, “at all costs” policy