With French borrowing costs soaring, the gap between French and German bonds has reached a 12-year high, reflecting increasing investor risk amid political turmoil.
Prime Minister Barnier warned of financial market turbulence if the budget fails to pass, highlighting the serious consequences of potential government collapse in France.
Political unrest is rising as opposition leader Marine Le Pen threatens to support a censure motion against Barnier, risking further instability in French politics.
The significant widening of bond spreads is reminiscent of the eurozone sovereign debt crisis, with investors nervous about fresh elections and ongoing political uncertainty.
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