Many years of budget deficit have caused France’s government debt to grow to 113 percent of GDP. The country now places itself as the third most indebted country in Europe. Only Greece and Italy have larger government debt.
At the same time, France’s long -term interest rates rise and, by extension, the cost of the country’s loans. During Monday’s sudden prime minister’s place, the interest rate rose on the French ten -year interest rates and passed both Greece and Italy’s interest rates. The gap for the German interest rate, which is often used as a measure of risk, rose again.
