02-December-2024
Economy News
 
Budget Woes Put French Borrowing Costs Equal With Crisis-Scarred Greece
29-Nov-2024

French borrowing costs effectively matched those of Greece on Thursday for the first time, as Michel Barnier's government teetered on the brink of collapse, underlining a dramatic shift in how lenders view the creditworthiness of euro zone members. Far-right and leftist opposition parties have been threatening to bring down Barnier's government over its budget that includes 60 billion euros ($63 billion) in tax hikes and spending cuts. Bond investors worry that the collapse of the government would mean any effort to cut borrowing is jettisoned. "A no-confidence vote would reset the progress made with the current budget proposal and trigger a new period of political limbo," said Michiel Tukker, senior European rates strategist at lender ING.

News Source:- https://money.usnews.com/investing/news/articles/2024-11-28/budget-woes-put-french-borrowing-costs-equal-with-crisis-scarred-greece