France’s Subnational Insolvency Framework (original) (raw)

France's subnational governments (SNGs) have gained administrative and financial autonomy through decentralization laws over the past decades. The regulatory framework governing SNG borrowing has evolved, including heightened scrutiny following instances of financial distress in the 1990s. Notably, SNGs are prohibited from declaring bankruptcy and must therefore rely on central government intervention in cases of insolvency. This chapter explores the intersection of decentralized responsibilities, fiscal oversight, and the mechanisms in place for resolving SNG insolvency in France.