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The Guardian - UK
The Guardian - UK
Business
Richard Partington Economics correspondent

French sovereign borrowing costs rise to highest premium in 12 years

Michel Barnier is trying to push through a budget involving €60bn of spending cuts and tax rises despite lacking a working majority in parliament.
Michel Barnier is trying to push through a budget involving €60bn of spending cuts and tax rises despite lacking a working majority in parliament. Photograph: Jumeau Alexis/ABACA/REX/Shutterstock

French sovereign borrowing costs have soared to the highest premium since the eurozone debt crisis amid political turmoil as the government faces the risk of collapse over a planned austerity budget.

The gap between French 10-year government bond yields and their German equivalent ballooned to as much as 90 basis points on Wednesday, the widest level in 12 years, while shares listed on the Paris stock exchange also tumbled.

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