French President Emmanuel Macron criticized comments made by foreign leaders, particularly U.S. President Donald Trump, regarding the recent mass protests and riots in France. Macron described these remarks as 'unacceptable' and 'stupid,' suggesting that they were politically motivated.
The unrest, which has seen significant public demonstrations against issues like public services and the cost of living, has also drawn attention from international figures, including Iranian officials. Amidst this turmoil, France's bond market is under pressure, with the yield on 10-year government bonds reaching a 24-year high of 5.113%, surpassing that of U.S.
Treasuries for the first time since 2013. This spike in borrowing costs raises concerns about France's fiscal health, particularly as the government debates its 2027 budget without a parliamentary majority. The potential for increased debt servicing costs and the risk of intervention by the European Central Bank loom large.
Additionally, the protests have led to estimated insured losses of up to 1.2 billion euros, further straining the economy. Analysts warn that prolonged unrest could dampen household and business confidence, exacerbating fiscal pressures in the coming years