French debt costs spiral as political and fiscal crises grow

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French government bonds again sold off on growing concern that cascading political and fiscal crises would hammer the EU’s second-biggest economy and potentially ripple across the bloc. Spreads between French 10-year debt and the German equivalent — Europe’s benchmark — widened to their highest since 2012, reflecting the risk premium markets are demanding following a weekend in which parts of France were enveloped in violent protest; the country also faces a huge debt burden and the prospect of a far-right leader taking the presidency.
Morningstar analysts noted the demonstrations would make it harder to bridge France’s budgetary shortfall, while Commerzbank warned that “this is not just idiosyncratic French selling, but [reflects] concerns about a global debt crisis.”

document fetched 2026-10-23 22:19 · canonical https://semafor.com/article/10/20/2026/french-debt-costs-spiral-amid-growing-concern-over-political-and-fiscal-crises