France Faces a Fresh Budget Battle that Threatens to Topple Another Government as Debt Costs Spiral

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Illustrative image Photo: PexelsFrench debt interest exceeds 4.5% and spread on Germany beats higher level since 2012

insider.gr

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France is paying an increasingly high risk premium on its debt as investors brace for another tough budget battle that threatens to spark a new political crisis, CNBC notes.

L'AGEFI

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During the summer, long-term interest rates on state debt reached record levels unprecedented for decades in the world (excluding China). France is characterised by a particularly marked deterioration: the 10-year spread of interest rates with Germany stands at 100 basis points, with the OAT at 4.5%, at the highest since 2008. At that time, France and the euro area had broadly aligned debt levels, around 65-70% of GDP. Since then, the French fis…