France's borrowing costs are skyrocketing, yet its leading candidates for next April's presidential elections—on both extremes of the political spectrum—seem alarmingly unalarmed. This disconnect has left hosts Katie Martin and Rob Armstrong, alongside markets correspondent Ian Smith, with a bad feeling about where things might be headed. The question on everyone's mind: does another eurozone crisis beckon?
The surge in French bond yields is raising concerns about wider contagion across the eurozone. As investors demand higher premiums to hold French debt, the risk of spillover effects onto other member states grows. Yet the political establishment appears oddly calm, with candidates on both ends of the spectrum failing to address what could be a mounting fiscal threat.
The episode also covers lighter fare, with Katie and Rob going long Norway and John Le Carré, while Ian shorts oversized cars. Listeners can access a free 30-day trial to the Unhedged newsletter at the FT's website.
With the April election approaching, the failure to grapple with rising borrowing costs could have serious consequences for France and the wider European economy.
Source: Financial Times Markets · Summarized by HeadlinesBriefing