The spread between French and German 10-year government bond yields reached 100 basis points for the first time since the eurozone debt crisis. As of September 18, the gap stood at 97.9 basis points, with French yields at approximately 4.48% and German yields at 3.50%.
French 10-year yields exceeded 4.5% for the first time since 2008. In April 2026, the spread was around 60 basis points. For comparison, the historical peak during the 2011 debt crisis reached approximately 190 basis points.
France's public debt currently exceeds 117% of GDP, significantly higher than the 60% eurozone threshold. The European Commission estimates the 2026 fiscal deficit at 5.1% of GDP, exceeding the EU's 3% limit.
Political uncertainty surrounding proposed government spending cuts by Premier Lecornu has contributed to market concerns. The widening spread reflects investor caution regarding France's fiscal trajectory and may lead to tighter financial conditions for French corporations.
