France-Germany Yield Spread to Widen to 100 Bps: Thozet

Kevin Thozet from Carmignac Gestion highlights the troubling outlook for France's economy following Prime Minister Sebastien Lecornu's resignation. He warns that if the government doesn't take action by 2027, debt servicing will overshadow essential spending like education. This situation is compounded by predictions of economic growth falling below potential in the coming years, which could lead to increased funding costs and further strain on the bond market. Understanding these dynamics is crucial for investors and policymakers alike.