Key developments

  • French bond yields and the spread over German debt have surged to levels not seen since the euro zone debt crisis.
  • France's benchmark borrowing cost rose above 5% for the first time since 2002 this week, while the French-German spread topped 170 basis points on Thursday.
  • France's government cut its 2026 growth forecast to just 0.5%, as analysts warn the situation could still bring further volatility and spillovers.