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

Why has France’s austerity budget caused a political storm?

Michel Barnier (right) and Antoine Armand at the National Assembly in France
The French prime minister, Michel Barnier (right), speaks with the finance minister, Antoine Armand. Photograph: Stéphanie Lecocq/Reuters

France is at risk of being plunged into fresh political turmoil as its minority government teeters on the brink of collapse amid opposition anger over a planned austerity budget.

Reflecting growing unease in financial markets, French sovereign borrowing costs have risen sharply, reaching the highest premium over German bonds since the height of the eurozone debt crisis in 2012.

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