French Debt Seen Riskier Than Spain’s for First Time Since 2007
- Investors question government’s ability to fix public finances
- New government said deficit risks exceeding 6% of GDP in 2024
Emmanuel Macron
Photographer: Oliver Bunic/BloombergFrance’s bonds are now judged to be riskier than those of Spain for the first time since 2007, a symbolic reversal pointing to the extent of its financial-market woes.
With Prime Minister Michel Barnier’s newly formed minority coalition struggling to get a grip on deficits after an inconclusive election, the shift in relative status shows how traders are increasingly projecting persistent disarray in Paris onto the price of the country’s debt.