French bond yields surpass Greek levels, signaling heightened debt risk for France
The yield on France's ten-year government bonds rose above that of Greece, indicating that investors now view French debt as riskier than Greek debt.
French sovereign bond yields have overtaken those of Greece, with ten-year French yields reaching roughly 4.18-4.22 percent compared with Greek yields of about 4.00-4.01 percent. This marks a notable inversion of the long-standing perception of France as the safest borrower in the euro area. Analysts attribute the move to France's public debt burden, a fiscal deficit staying above the EU's three-percent ceiling, and weak economic growth, all of which complicate budgetary decisions before the 2027 presidential race.
Higher yields raise the cost of rolling over existing debt, tightening the fiscal space for the current administration. The article also notes that Greece's debt trajectory is improving, with primary surpluses and a better credit rating, contrasting with France's deteriorating market confidence. Political figures such as Emmanuel Macron, Marine Le Penová, and Jean-Luc Mélenchon are mentioned in relation to the upcoming electoral contest and differing fiscal approaches.
