France pays the highest borrowing costs since the euro crisis

WHAT HAPPENED

France pays around 4.48% interest to borrow money for 10 years, compared to 3.50% from Germany. The difference reached nearly 1 percentage point, its highest level since the European debt crisis of 2011-2012.

WHY IT MATTERS

Investors see more risk because French debt equals 119% of what the country produces and its deficit is 5.4%, compared to the European limit of 3%. The government will pay more interest, putting pressure on hospitals, schools, pensions, taxes, and credit.

AND FOR YOUR PORTFOLIO

For an average person, the effect does not come as an immediate bill, but it can translate into less public spending, higher taxes, or more expensive loans. For portfolios, a riskier France can increase tension in European markets and pressure the euro.