Overview

• Prime Minister Sébastien Lecornu stepped down just a month into the job, extending government turmoil in Paris.
• French stocks fell on Monday with banks under pressure, though overall market moves remained limited, according to analysts.
• Ten-year OAT yields climbed to about 3.60%, versus roughly 2.71% for German Bunds, now above comparable Italian and Greek bonds.
• Fitch cut France’s rating to A+ in mid-September, citing polarization and constrained prospects for fiscal consolidation before the 2027 election.
• With public debt near €3.3 trillion and a debt ratio around 114%, France remains under an EU deficit procedure as the ECB points to TPI as a contingency tool rather than a shield for weak policy.