The street battles in France are fuelling fears on the financial markets of an escalation of the crisis
International investors currently view the country more critically than Italy or Greece. The yields on French government bonds, a risk indicator, are at their highest level since 2002.
France is being viewed critically by international investors, with the country's bond yields reaching a 20-year high. The yield on 10-year French government bonds rose to almost 5% on Tuesday, the highest since 2002, as investors demand higher returns for the increased risk of investing in France. The country's debt-to-GDP ratio has risen to 120%, with record-high absolute debt of €3.6 trillion, and the economic situation is being exacerbated by ongoing social unrest.
The European Central Bank may intervene with bond purchases if necessary, but only if the French government attempts to address its financial issues and reduce its deficit.
Written by urgent.news from NZZ Wirtschaft's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
