France. Protest will further reduce the State's margin

Protests in France, driven by rising living costs and dissatisfaction with public services, have escalated into violence, impacting investor confidence. Over half a million people demonstrated, leading to significant property damage and arrests. The unrest has raised concerns about France's public debt sustainability, with bond yields reaching levels not seen since 2002. Analysts warn that ongoing instability could hinder economic growth and complicate government budget approvals. The current political landscape is less favorable than during the Yellow Vest protests, with a fragmented parliament and upcoming presidential elections. Investors are demanding higher yields for French debt compared to German bonds, reflecting heightened risk perceptions.