French Financial Crisis
By 1786 the French monarchy faced effective bankruptcy, with debt service consuming more than half of state revenue — a consequence of costly wars including French support for American independence and decades of structural fiscal mismanagement. Controller-General Calonne revealed the scale of the crisis to Louis XVI and proposed sweeping tax reforms that the Assembly of Notables refused in 1787, exposing the impossibility of taxing the privileged orders under the Old Regime. The failure of every reform effort forced the king to convene the Estates-General for the first time since 1614, inadvertently opening the door to revolution.
- Year: 1786 CE
- Category: Economic
