France: Financing conditions tighten after weekend violence

On Tuesday, the gap between French and German 10-year borrowing rates reached 1.53 percentage points, its highest level since January 2012, as France borrowed at 4.96% compared with Germany’s 3.43%. French borrowing costs also exceeded those of Italy and Spain, reflecting greater investor concern about French debt after the weekend violence. Riots and looting on Saturday, following a national cost-of-living protest, led to about 2,400 arrests and nearly 1,000 police officers and gendarmes injured, according to authorities. The government plans €43 billion in new fiscal measures for 2027 to bring the deficit down to 5% of GDP, but analysts say spending cuts will be difficult to implement amid social tensions and a deeply divided parliament.