France’s debt approaching €3.6 trillion and borrowing costs scaling historic highs, a French fiscal crisis would dwarf Greece in sheer financial scale.

There is a rising anxiety in financial markets over France’s severe fiscal deficit and surging borrowing costs.

France’s debt crisis deepens as euro falls to 17-month low, bond yields surge toward 5%

France’s 10-year government bond yields surged to roughly 4.93%, their highest level since 2002—while the crucial spread over German Bunds reached near-record 2011 crisis heights. This directly reinforces the premise that France’s fiscal trajectory is entering dangerous territory, raising debt-servicing costs toward €91 billion.

Japanese asset manager dumps entire French bond holding as market loses faith in budget

Sumitomo Mitsui DS Asset Management completely liquidated its holdings of French government debt, signaling that institutional investors are pulling out internationally. This provides hard evidence of a loss of core market confidence that goes far beyond local political posturing.

French debt contagion fears spread to spark widening bond spreads in Italy, Spain, and Greece

Market panic over France’s budget deficit has begun dragging down neighboring eurozone debt markets, widening spreads across Mediterranean economies. This broadens the original claim by showing that France’s fiscal instability is actively threatening wider European financial stability.

h/t SignificantLegs