Bank of France Warns Voters on Cost of Euro Exit, Rising Spread
- French-German bond spread is at highest level since 2012
- Villeroy de Galhau sees higher borrowing costs outside euro
BAML Economist Says Hard for Le Pen to Quit Euro Zone
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Bank of France Governor Francois Villeroy de Galhau cautioned French voters about the costs of withdrawing from the euro, noting that local interest rates are already rising on concerns about this year’s presidential election.
National Front leader Marine Le Pen, who wants to take France out of the single European currency, is on track to place first in the initial round of voting in France’s 2017 election, though she is unlikely to win the run-off and attain office, polls show. Even so, with the National Front closer than ever to power, the premium the French government pays to borrow over Germany has increased to its highest level in more than four years.