Even though the recent political turmoil in France has somewhat subsided, the country remains on an unsustainable fiscal trajectory, Charles Kalshoven notes in his Decoder. The increase in French sovereign debt since 2000 closely mirrors that of Greece. Moreover, French sovereign spreads are now on par with Greek spreads. Meaningful action will likely only be undertaken if interest rates rise further.
Read more about the implications for French sovereign debt and the outlook for interest rates in this Decoder.
The implications of France’s political inability and fiscal unsustainability for investors
Published on:
16 December 2024