France faces financial crisis

French Finance Minister Bruno Le Maire warned that the eurozone's second-largest economy risks facing a financial crisis following President Emmanuel Macron's decision to dissolve parliament and call early elections.

Mr Le Maire said that France is and will have to pay higher interest and principal on government bonds in the context of rising bond yields. In the financial markets, currencies, stocks and bonds of France, investors have sold off their assets after President Macron called for early elections.

Mr Macron’s decision also raised concerns among investors that the far-right in France, led by Marine Le Pen’s National Rally (RN), could win the upcoming election. RN would then push for a high level of public spending, thereby further “bloating” France’s already large public debt.

DO CAO