France’s borrowing rate has exceeded that of Greece, indicating a lack of confidence by financial markets. Despite the eurozone, few countries have higher interest rates than France, challenging its budgetary control and credibility.
‘Zero credibility’
Political tensions and budget issues have led to France’s rising interest rates. Despite concerns, it is not considered a financial crisis as the government is still able to sell its debt with high demand from investors.
The precedent to avoid is that of Italy
Market players remain cautious, unsure if France will face a scenario similar to Greece. However, investors’ faith in the euro helps maintain the solvency of countries like France and Italy, differentiating them from past economic crises.