Therefore,
Debt europe: france soon less new: Meanwhile. Nevertheless,
Debt europe: france soon less:
Paris – Borrowing over ten years could soon cost France more than in Italy. Consequently, After Spain. In addition, Portugal, which already benefit from better rates, hexagon increased in its place as a budgetary student in Europe.
At the beginning of July. For example. Therefore, the rate of the Italian sovereign debt in the 5 -year expression slipped under the French rate, a first since 2005.
The next strong signal could come from the borrowing rate at ten years. Therefore. In addition, the reference for international comparisons, and therefore to assess the financial reliability of a state in the eyes of the markets.
«Enormes efforts» – Debt europe: france soon less
The French rate at ten years, currently at 3.37%, is at the heart of concerns as the gap is reduced with that of Italy, debt europe: france soon less new to 3.54%. For example, The “spread”. Moreover. or the gap between the two, “is reduced to sorrow debt europe: france soon less skin”, underlines Mabrouk Chetouane, responsible for the market strategy of Natixis IM.
It is now less than 0.2 percentage points, against 1.20 points a year ago. Therefore, The curves could cross.
This “rapprochement (…) only translates a trend that we see in public finances,” says Philippe Ledent, an economist expert at ING. He believes that France will have to be “enormous efforts” to overthrow the steam.
“We are at a critical moment in our history. ” said French Prime Minister François Bayrou on Tuesday. revealing his measures to redress the finances of a country subject to the “deadly danger” of “crushing by debt”.
He recalled that France’s public deficit reached 5.8% of GDP in 2024. for public debt representing almost 114% of GDP, the third largest in the debt europe: france soon less new euro zone behind Greece and Italy.
According to the projections of the European Commission published in May. France should record the worst debt europe: france soon less public deficit in the euro zone in 2025 and 2026.
France finds itself “bogged down in low economic growth, public finances out of control (…) and a rating that tends to deteriorate,” continues Mr. Ledent.
The S&P agency has indeed improved last April the notation of Italy’s public debt to “BBB+”. accompanied by a “stable” perspective. when the note of French debt (AA-) has been accompanied since February with a negative perspective, which means that it could be demoted.
“Spectacular pragmatism” against political blockage
Opposite, despite the extent of the Italian debt – close to 3,000 billion euros in 2024, or 135.3% of its GDP – Rome regained the favor of the markets.
The president of the Italian council Giorgia Meloni. her debt europe: france soon less new government, under high pressure to reduce this colossal debt, “showed quite spectacular economic pragmatism,” notes Mabrouk Chetouane.
The Italian public deficit was more than expected in 2024, debt europe: france soon less to 3.4% of the gross domestic product (GDP). Better than anticipated tax income even made it possible to return to a surplus of public accounts in the. fourth quarter of 2024. which had not happened since 2019.
What “consider that Italy is better able to manage its debt than France”. according to Benjamin Melman, asset allocation manager at Edmond de Rothschild.
France is. it. “perceived as a country which cannot make reforms, which has already gone very far with a significant tax rate, and which is found today a little blocked”, explains to AFP Aurélien Buffault, bond manager of Delubac AM.
And since the dissolution of the National Assembly in June 2024, investors feared political blockage.
They debt europe: france soon less new therefore require a higher yield to have French debt. a legitimate “a bonus” “because there is a risk that the country will become ungovernable,” notes Mr. Chetouane.
The announcement by François Bayrou debt europe: france soon less of a draconian budget cure of 43.8 billion euros for 2026 did not move the bond market, which remained of marble. An indifference which should last as long as the measures presented are not materialized.
For Mr. Ledent. “we will have to pass this course. and probably one or the other censorship (of the government) at the start of the school year”.
Emeline BURCKEL
© Agence France-Presse
Further reading: Brennan bleeding, barlot too feverish – INTERVIEW. “. France must solve its problems with its citizens”: following incidents, a Swiss commune prohibits access to the swimming pool to the French – In Lyon, an inmate escapes from prison in the laundry debt europe: france soon less new bag of a man released – Direct – Tour de France: follow the 9th stage between Chinon and Châteauroux – Illegal rave-party in the town of Chasseradès: the department closes the roads.
Debt europe: france soon less new
Further reading: The eternal fight of the cat and the mouse – France awaits a good wheat harvest, at 32.6 million tonnes in 2025, increasing compared to last year – TF1, TMC, France 2… Facing PSG, the French female team wandered from chain channel – “We will not tolerate anything”: Bruno Retailleau warns “the barbarians” on the eve of Chelsea-Psg – Tour de France in Toulouse: Team Ineos celebrates its Gers roots during the rest day.
