France is on fire, but something more dangerous burns below (opens the source in a new tab)
- The Economic Times says France’s debt is about €3.5tn, close to 120% of GDP, and its Bond yield The annual return a bond pays at today's price; rising yields mean borrowing is getting dearer. near 4.9% is the highest in over two decades, about 140 Basis point One hundredth of a percentage point: 100 basis points = 1%. above Germany’s.
- The 2027 budget seeks €43bn in cuts and tax rises, while interest payments are projected at €91.2bn, more than education or defence.
- Pension costs take 32% of the education ministry’s budget, so protests over schools collide with the need for austerity.
- 4.9%
- French 10-year yield
- ~140bp
- gap over Germany
Why it matters A state that cannot fund the services people want ends up paying more to borrow, which squeezes those services further.
Other side The piece notes France is not facing automatic default: long debt maturities and a diversified investor base give some cover, and the IMF calls the rise manageable for now.