French borrowing costs overtake US amid budget turmoil
France is facing economic instability as borrowing costs exceed those of the US amid budget gridlock and widespread civil unrest. The government is struggling to pass reforms, including pension changes, while recovering from violent protests.
Why it matters
Rising borrowing costs for a major European economy signal potential instability in the Eurozone and reflect the difficulty of balancing fiscal policy with public sentiment.
France is recovering from widespread protests that turned violent at the weekend. Photograph: Telmo Pinto/NurPhoto/Shutterstock France is recovering from widespread protests that turned violent at the weekend. Photograph: Telmo Pinto/NurPhoto/Shutterstock France French borrowing costs overtake US amid budget turmoil France’s bond market hit by another bout of selling as country recovers from weekend protests
Prefer the Guardian on Google French borrowing costs continued to rise on Thursday, as investors fret that France’s government is struggling to pass a federal budget after public protests gripped the country.
France’s bond market was hit with another bout of selling, with the difference between French and German 10-year borrowing costs – a metric for the risk premium attached to French debt – rising to its highest level in almost 15 years.
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