From EUobserver · · 1m 20s
ECB Saves France?
How high must French borrowing costs rise before ECB steps in?
In brief
How high must French borrowing costs rise before ECB steps in? France's bond spreads hit 109 basis points, risking ECB intervention if spreads reach 250 basis points. Originally reported by EUobserver.
French borrowing costs surge
French borrowing costs are surging as central bankers fret about the country being strangled by interest rates.
Moulin warns of deficit risks
Emmanuel Moulin, head of the French central bank, said France risks being strangled by interest rates and could face a six percent deficit next year.
Proposed cuts face parliamentary hurdles
The French minority government proposed €43bn worth of cuts for 2027 but pushing them through parliament is a tall order in a divided country.
Bond spreads widen rapidly
The gap between french and german bond yields widened to 109 basis points from 50 basis points, costing french society €15bn annually.
Economist highlights costs
French economist Shahin Vallée said in three weeks they lost the equivalent of €15bn a year in higher debt-servicing costs over a ten-year horizon.
ECB president says France not sick man
ECB president Christine Lagarde said France is not the new sick man of europe, noting countries like greece have restored confidence and returned to growth.
ECB intervention thresholds
The ECB might step in if spreads reach 250 basis points, but would require compliance with eu fiscal rules and existential threats to stability.
In short
France's bond spreads hit 109 basis points, risking ECB intervention if spreads reach 250 basis points.
