France’s government borrowing costs have surged as investors grow increasingly concerned about the country’s public finances, political uncertainty and ongoing protests. On Thursday, the premium investors demand to hold French 10-year government bonds over safer German bonds reached 173.58 basis points, its widest level since November 2011 during the euro zone debt crisis.
French financial markets are showing signs of increasing pressure as concerns over high government debt and political uncertainty intensify ahead of next year’s presidential election. The government is seeking €54 billion in savings in its proposed 2027 budget, while economic growth is expected to slow to 0.4% this year. The risk premium on French government […]
Inflation increased across four major German states in July, according to preliminary figures, signalling that the country’s national inflation rate is also likely to rise. Bavaria, North Rhine-Westphalia, Baden-Wuerttemberg and Lower Saxony all reported higher inflation compared with June, reflecting continued price pressures. The German government expects inflation
The European Central Bank (ECB) expects inflation in the eurozone to return to its 2% target within the next year, according to ECB Chief Economist Philip Lane. Speaking after the central bank kept interest rates unchanged, Lane described the current inflationary pressures as a “medium-sized” shock that requires a measured policy response rather than aggressive
European Central Bank (ECB) President Christine Lagarde has said she cannot completely rule out leaving her position before the end of her term in October 2027 if she decides to play a role in French politics. In an interview with French newspaper Les Échos, Lagarde said it was “possible” she could depart early, adding that […]
Europe’s economy is facing mounting pressure as the ongoing Iran war drives up energy costs and weakens business activity across the region. Fresh data showed the euro zone economy contracted at its fastest pace since late 2023, with rising fuel and living costs reducing consumer demand and hurting the services sector. Economists warned the crisis […]
European Central Bank policymakers have downplayed the likelihood of an interest rate hike in April, emphasizing the need for more economic data before making any decision. European Central Bank officials noted that while inflation has risen above the 2% target due to higher energy costs, the timing of any policy move is less important than […]
A European Central Bank policymaker has warned that inflation expectations in the euro zone could climb faster than previously seen, urging the ECB to remain ready to raise interest rates if price pressures persist. Dimitar Radev said rising energy costs linked to the Iran conflict have pushed inflation above the ECB’s 2% target, increasing risks […]
Inflation increased to at least 2.5% across four German states in March, driven largely by rising energy prices linked to the ongoing U.S.-Israeli conflict with Iran. In North Rhine-Westphalia, Germany’s most populous state, annual inflation climbed to 2.7% from 1.8% in February. Similar increases were recorded in Bavaria, Baden-Wuerttemberg and Lower Saxony, signalling a
European Central Bank President Christine Lagarde is reportedly considering an early departure from her post, potentially before France’s 2027 presidential election. The move, cited by the Financial Times, would allow outgoing President Emmanuel Macron to have a say in selecting her successor, as a far-right victory next year could complicate the choice. ECB officials,









