France’s Economic Position Surpasses Expectations Amid Public Spending Challenges

France has been ranked as the 11th largest economy worldwide for 2025, according to The Economist’s annual assessment of OECD countries' economic performance. This ranking notably places France ahead of Germany, ranked 20th, and the United States at 17th, highlighting its surprisingly strong economic showing despite political instability and public skepticism. France maintains one of the lowest inflation rates in the EU with a forecasted growth of 0.9% for 2025, supported by a recovery in investment and robust exports, particularly from the aeronautics sector with Airbus playing a key role. Olivier Redoulès, director of studies at Rexecode, noted that "Airbus has driven growth," and suggested that the impact of economic uncertainty might have been overestimated. However, the country still faces significant challenges, including low productivity, employment issues, and a high level of public debt—117% of GDP—coupled with a public deficit exceeding €160 billion. Redoulès warned that this fiscal model is "untenable" in the long term without substantial reforms.

Amid these macroeconomic circumstances, public institutions like the Université de Pau et des Pays de l’Adour (UPPA) are experiencing severe financial stress. UPPA’s president, Laurent Bordes, revealed that the university must economize by €2 million in 2026, largely due to state-imposed salary increases, higher retirement contribution rates, and new social protection costs that are not reimbursed. The university currently holds reserves allowing only 24 days of operation. To reach financial balance by 2028, an effort of €17.4 million is needed, though only €7.6 million is realistically attainable. This shortfall has prompted austerity measures including reducing 6,000 teaching hours (around 2.5% of supplementary hours), non-replacement of one-third of retiring faculty leading to lost positions, and curtailed library services during exam periods. Union representative Samuel Legris criticized these cuts as an "unacceptable bleed" that will harm student conditions and eliminate certain transversal courses from 2026 onwards.

Together, these developments paint a complex picture of an economy that is outperforming international expectations but simultaneously grappling with deep fiscal challenges that are impacting key public sectors like higher education.