The gap between French and German 10-year yields has grown to just over 1.50 percentage points. This is the largest gap since the euro crisis and can be described as the risk premium lenders demand when they perceive a risk of France having problems making its payments.
Protests in France - initially against the school system, expensive housing and high prices - degenerated into violent riots, vandalism and looting in many French cities this weekend. The unrest has led to curfews in parts of the country. But new protests have been announced for Saturday.
The violent scenes on the streets are unfolding as the French parliament negotiates a budget for 2027. The government’s proposals include severe austerity measures to reduce France’s large budget deficit.
