France, long regarded as an economic pillar of Europe, has found itself embroiled in political and financial turmoil in recent years. Multiple attempts to push for much-needed fiscal reforms has thrown the country’s leadership into disarray and intensified scrutiny of its mounting debt crisis. With elevated government bond yields and deteriorating credit ratings, investors and policymakers alike are grappling with the implications. How can bond investors navigate this volatility?
French Prime Minister (PM) Lecornu secured wins in two no-confidence motions in the National Assembly, triggering a rally in French stocks, and paving the way for additional discussions over a draft budget. Markets welcomed the news that the country, for the time being, has avoided snap elections and the political uncertainty has eased.
PM Lecornu’s resignation follows opposition from both left and right parties regarding the composition of his government, which was announced on Sunday evening. As was the case when the Bayrou government fell, President Macron now has two options