EZB8RISK / Market Briefing

French markets stay on edge as the government's belt-tightening 2027 budget meets skeptical bond investors, with French debt risk now spilling over into wider euro-area bond spread

French markets stay on edge as the government's belt-tightening 2027 budget meets skeptical bond investors, with French debt risk now spilling over into wider euro-area bond spreads. The ECB has signaled it's unlikely to step in, leaving fiscal nerves to run their course. On the ground, student protests over school conditions have escalated, prompting a crisis cabinet meeting and adding social strain to an already tense fiscal moment.

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