French borrowing costs touch 5% amid political unrest and budget deadlock
France’s 10-year government bond yield briefly reached 5% for the first time in 24 years, as investors reacted to political uncertainty, civil unrest and the failure to pass next year’s budget. Higher borrowing costs add pressure to public finances, while concern about France has also weighed on the euro.
The yield rose by more than eight basis points in morning trading before easing to 4.99%. Protests that began over conditions in schools broadened into demonstrations about living costs, with riots and looting reported in several towns and cities. France had a budget deficit of 5.1% of GDP and public debt of 115.6% of GDP in 2025; both are forecast to rise without corrective action.
- French borrowing costs briefly reached a 24-year high.
- The government has yet to pass next year’s budget.
- Political uncertainty is also weighing on the euro.
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Originally published by The Guardian as “French borrowing costs hit 24-year high as civil unrest and budget fears spook markets”.