Worse than Greece? Why financial markets are singling out France for a 2010-style sovereign debt crisis

• Financial markets now view France as riskier than Italy and Greece, demanding higher interest rates due to rising debt and political instability ahead of elections.
• France’s public debt is projected to rise to 121.7% of GDP by 2027, with debt servicing costs increasing sharply, despite proposed austerity measures facing strong political opposition.
• The political paralysis and poor economic growth threaten France’s financial stability, challenging Europe’s security and risking credit downgrades amid limited support from other EU nations.

BRUSSELS – For a quarter of a century, global financial markets rated France’s economy a better bet than Europe’s other deeply indebted nations.

Yet that ranking has now been turned upside down. France is now asked to pay higher interest rates on its long-term borrowing requirements than either Italy or Greece, until recently regarded as Europe’s riskier economies.