Three Scenarios: What Could Happen in the Event of a French Debt Crisis

Jyllands-Posten

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While the French government may lose its life trying to get a new budget through, interest rates in France have risen so much that they are now above the levels in Italy and Greece. This could ultimately end in a crisis, according to one assessment.

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High tension on the OAT, as evidenced by the 10-year yields on the secondary market and the France-Germany spread. And another negative news has just arrived. Bond market / Spread, Public debt, First Floor, Public deficit, France, Oat

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Rapidly rising fixed interest rates have heightened fears of a potential French debt crisis. While this seems unlikely, three different scenarios are possible if the worst-case scenario were to occur, according to experts at the Bruegel think tank.

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Rampant long-term interest rates have heightened concerns about a possible French debt crisis. That may be unlikely -- but if the worst were to happen, three different scenarios are possible, say the Bruegel think-tank's experts.