Kommentar: Das gefährliche Ende der Ära Macron

Burning school buildings and clashes with the police are causing alarm in France, but the deeper issue is far more concerning. The country is entangled in a delicate situation marked by high debts, slow growth, and political deadlock. France has become a cause for worry in the Euro zone. For Germany, the situation is becoming increasingly unstable.

With just seven months left until the presidential election, the Macron era is visibly coming to an end. While Macron still holds influence on the international stage, his domestic impact is fading away. In this vacuum, a small spark could ignite the situation further. Few are in a position or willing to halt this downward spiral. In fact, quite the opposite is happening, causing markets to become increasingly nervous.

In addition to geopolitical crises, doubts are growing about France's financial stability. The bond yields are at levels reminiscent of the financial crisis. The risk premium for French government bonds has reached record highs. For a country with a debt-to-GDP ratio of 119 percent, this is particularly risky. With each interest rate increase, the cost of financing debt continues to rise. Meanwhile, the hoped-for growth remains elusive.