France's rising debt costs threaten stability as risk premium hits highest since financial crisis
Political standoff and costly promises from far-right and far-left feature in debate as interest payments are projected to exceed €90 billion by 2027
France's public debt, at around 120% of GDP, is pushing up borrowing costs. The risk premium over German bonds, the spread, has more than doubled since June 2026 and is now at its highest level since the financial crisis, as the country faces nationwide protests, a government without a parliamentary majority, and mounting fiscal pressure.