In the lead up to the parliamentary elections scheduled for June 30th and July 7th, France finds itself grappling with its hefty deficit and growing debt, which have become central issues in the political campaign. The European Commission is expected to put France into an excessive-deficit procedure, a move that could have significant consequences for the country's economic future.

The term "exorbitant privilege," coined by French politician Valéry Giscard d'Estaing in the 1960s, referred to the advantages enjoyed by the United States as the issuer of the world's reserve currency. These benefits included the ability to comfortably run high deficits. However, France now realizes that it is not granted such privileges.

The European Commission's decision to initiate the excessive-deficit procedure signifies the need for French politicians to develop a plan to address the economic challenges facing the nation. The commission's officials have valid reasons for taking this step as France currently holds an American-style deficit of 5% of its GDP, a figure that is expected to decrease only gradually. Additionally, the country's debt-to-ratio of 111% is reminiscent of Italy's situation prior to the euro crisis in the early 2010s, and it is projected to rise further.

The rating agency Moody's Global recently downgraded France's government sovereign-debt rating, highlighting the seriousness of the country's fiscal situation. This downgrade, which occurred on May 31st, comes as France's president, Emmanuel Macron, takes the risk of snap elections that potentially pave the way for the hard-right National Rally party.

The upcoming parliamentary elections have intensified the focus on the French economy and the necessary steps to address its financial woes. As the European Commission's excessive-deficit procedure looms, it becomes increasingly crucial for French politicians to present a robust plan to alleviate the deficit and debt challenges before them.

The outcome of these elections and the subsequent actions taken by France's leaders will significantly impact the country's economic future and its ability to regain a solid financial standing. As the European Commission turns its attention towards the fiscal state of affairs in France, the hopes of stabilizing the nation's economy rest heavily on the shoulders of its elected officials.