How does instability in France raise the stakes for global markets? In a week dominated by US drama, French political and debt crises quietly escalated. With Prime Minister Francois Bayrou heading into a likely no-confidence vote and the government proposing deep austerity measures, France’s borrowing costs have soared to some of the eurozone’s highest rates—reviving old EU debt fears.
- France’s debt-to-GDP exceeds 114%, and deficits are larger than Greece, Spain, or Italy
- Investor anxiety has spread to banks and insurers, sending the Paris stock market tumbling over 5% in major names like BNP Paribas and AXA
- French opposition and labor unrest threaten to paralyze the country in September
The risk? The eurozone’s second-largest economy could trigger broader market instability, especially if leadership collapses or debt downgrades hit. As the US makes trade and monetary waves, Europe’s backbone is showing cracks—reminding investors there’s more than one story brewing below the surface.
