France’s Years of ‘Fiscal Murder’ Are Catching Up With It
Investors are shunning French debt over the country’s political gridlock and budgetary largess.
A nation whose bonds were historically seen as a proxy for German bunds, the region’s safest asset, now finds itself diminished by a selloff.
Photographer: Nathan Laine/BloombergThis article is for subscribers only.
France is waking up to a harsh reality: its fall from favor in the eyes of global investors is pointing to a long, painful and uncertain rehabilitation.
A nation whose bonds were historically seen as a proxy for German bunds, the region’s safest asset, now finds itself recast as a poster child for fiscal incontinence. Its debt yields are now aligned with Spain — and increasingly close to those of Italy.