Moody's affirmed France's sovereign rating at Aa3 with a negative outlook, warning that slowing growth, a widening fiscal deficit, rising financing costs and social protests could hinder fiscal consolidation; France's 2026 deficit is projected at 5.4% of GDP, and the France-Germany 10-year yield spread widened to 178bps Thursday from 85bps in early September.
Jin1010/24, 05:10 AM
- Aa3
- 5.4%
- 5%
- 178bp
Figures as quoted by Jin10
Market impact
Which way this story pushes each asset. An inference from the story, not a measured move.
EUR
Pushes down
DaysMedium confidence
Negative outlook and widening France-Germany spread raise the euro-area sovereign risk premium, weighing on EUR.
What could change this
If the France-Germany spread stabilizes or narrows, the pressure on EUR from this specific risk premium would ease.
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