Debt Crisis Talk Returns: French Borrowing Costs Near 25-Year High Amid €3.6 Trillion Debt and Budget Deadlock
The cost of long-term French government borrowing is approaching its highest level in around 25 years, with the 10-year yield at about 4.85%, as parliament remains deadlocked over next year's budget and markets lose confidence in Paris's ability to consolidate its finances. France's public debt now stands at roughly €3.6 trillion, and last Friday the French-German/Italian spread touched euro-era crisis levels, a marker of how sharply sentiment has turned.
The fiscal re-pricing comes as the European Central Bank stays cautious on rate cuts amid energy-price shocks and geopolitical risks, tightening funding conditions across the euro area and hitting highly indebted members hardest. Politically, far-right National Rally leader Marine Le Pen is polling at 35%–37%. The market question is less France's near-term solvency than whether its fragmented parliament can produce any credible consolidation path; because France is a core, “too big to fail” member of the euro, sustained high funding costs would transmit through the currency, sovereign spreads and bank balance sheets across the bloc. (Sources: Cailian Press, Reuters)
Source: 财联社、路透社
Published by GSM · USA (original Chinese edition)
Photo: 法国国民议会所在地巴黎波旁宫，CC BY-SA 4.0（Wikimedia Commons）
