Is France’s Sovereign Debt Heading Towards ’Junk’ Territory? - Investing.com
Is France’s Sovereign Debt Heading Towards ’Junk’ Territory? - Investing.com
Source: Investing.com
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DW NOTE
France's debt-to-GDP ratio sits at 112%, trending toward 115% — a level that would put it among the eurozone's worst fiscal positions while lacking the monetary sovereignty to devalue its way out. The junk threshold isn't a metaphor; it's the point at which pension funds are forced to divest and refinancing costs spiral. With 10-year Treasuries now at 5.28%, French OATs are repricing into a world where fiscal profligacy finally has consequences.