French markets face mounting pressure over rising debt
French markets face mounting pressure from high debt and political gridlock ahead of the presidential election. The risk premium on French debt has hit its highest level since the euro zone crisis in 2012 amid slowing economic growth.
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France's sovereign debt risk premium surged to 150 basis points during Thursday late evening trading, hitting its highest level since the 2012 euro zone crisis. The sharp widening reflects mounting investor anxiety over political gridlock and high budget deficits as the government seeks €54 billion in savings. The market pressure threatens to further constrain fiscal maneuvering and spill over into broader European debt instruments.
