French Debt Market Pressures

France faces rising market pressure as decades of deficits push up risk premiums

After decades of budget deficits and rising debt, markets are placing a new premium on French risk. Investors are charging more to hold government bonds and the stock market is under pressure. The cost of insuring bank bonds against default has also increased. The euro fell to its weakest level since May 2025 due to fears of unrest outside France's borders.

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