Rise in interest rates: "Without calm in the financial markets, France may well need assistance from the ECB quickly"

Moody's maintained France's debt rating at AA3 with a negative outlook, surprising many economists who expected a downgrade due to rising deficits and debt. The agency focused on short-term factors, predicting a budget for 2027 that would reduce the public deficit to 5.2% of GDP. However, political polarization and social unrest raise doubts about the government's ability to meet these targets. Investors are concerned that the government may increase spending to address social demands, leading to higher borrowing costs. The recent rise in the ten-year borrowing rate reflects these fears.