'Not Sustainable' - French Borrowing Costs Soar Amid Election Uncertainty
8 Articles
8 Articles
On the eve of the government's presentation of the budget, the second largest asset manager in the world makes an alarming observation on the country's public finances, worrying about the prospect of the presidential election 2027.
'Not sustainable' - French borrowing costs soar amid election uncertainty
France is facing a period of acute bond market stress that could last several years unless the presidential frontrunners for next year’s election commit to tackling its gaping deficit, analysts have warned. The difference between French and German government borrowing costs – a key metric used to determine French debt risk – widened beyond 120 [...]
Vanguard, one of the world's largest asset managers with $12 trillion under management, has warned that France's credit rating is deteriorating as the government fails to reduce its budget deficit. Rising borrowing costs could continue to rise, and the presidential election next April could bring further uncertainty to markets, the Financial Times reported.
Energy shock-induced inflation, record debt, and political uncertainty are making France one of the most vulnerable links in European bond markets. Paris's €54 billion austerity plan has failed to convince investors, and the country's borrowing costs have surpassed even Italy's.
Vanguard Warns France Is a 'Degrading Credit'
London, 30 September 2026 — EBM Newsdesk Analysis — By Anthony Gill On Wednesday, 30 September, Vanguard told the Financial Times that France is likely to face even higher borrowing costs as its credit keeps deteriorating. Ales Koutny, Vanguard’s head of international rates, called France a “long-term degrading credit”. He warned that demand in debt […]
Vanguard, one of the world's largest asset management firms, warned that government bond yields could rise further as France's sovereign credit rating deteriorates.
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