The cost of financing France's debt rises to the highest level since 2002

France's 10-year bond yields have surpassed 5% for the first time since 2002, raising concerns about the country's fiscal health amid recent civil unrest. The risk premium has approached 160 basis points, indicating investor distrust, as France's borrowing costs exceed those of Italy and Spain. The 2027 budget aims to reduce the public deficit to 5% of GDP, but political divisions complicate this goal. Analysts predict worsening conditions before improvement, with Moody's set to review France's credit rating. Despite rising risk premiums across the eurozone, systemic risk remains low, and historical comparisons show France's current fiscal situation is worse than in 2002, with a significantly higher debt-to-GDP ratio.