The French economic absurdity
The cost of debt increases as a result of unbalanced public finances and stagnant economic growth.
France's economy is accelerating at a disparate rate. The cost of financing its debt is around 5%, close to the US record. The risk premium, or additional yield required by investors compared to Germany, has fluctuated between 138 and 143 basis points this week. This means the financial cost of a French company exceeds that of a German company by 1.4%, a competitive disadvantage. France's risk premium is more than double that of Spain, which was around 62/63 points.
Written by urgent.news from El Pais Economia's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
