France Faces Financial and Political Turmoil as Borrowing Costs Surge

Investor confidence wanes as France's borrowing costs equal Greece's, while political instability threatens the government's survival.

France's 10-year government bond yields briefly surpassed Greece's for the first time, reflecting investor concerns over its political and fiscal challenges.
Prime Minister Michel Barnier's minority government is at risk of collapse due to opposition to a proposed €60 billion austerity budget of tax increases and spending cuts.
The spread between French and German bond yields reached its highest level since 2012, signaling growing market apprehension about France's fiscal trajectory.
S&P Global Ratings is set to review France's credit rating, with analysts speculating a potential downgrade or negative outlook due to worsening public finances.
French public debt continues to rise, projected to exceed 113% of GDP in 2025, while political gridlock raises fears of a prolonged financial and governance crisis.