Violent street protests in France and Italy trigger stock and bond sell-off and send euro lower – business live
Roaring exports lift China’s economic growth French bonds and stocks have sold off, putting fresh pressure on the euro.
Widespread and increasingly violent protests across France have piled pressure on the government, which is struggling with weak economic growth and ballooning debt.
It has yet to pass its budget for next year.
The French public deficit is projected to widen to 5.4% of GDP in 2026, up from 5.1% in 2025.
Although the government initially targeted a 5% deficit, several factors are expected to weigh heavily on state revenues because of lower-than-expected domestic economic activity.
For 2027, the government has announced a €54bn savings plan aimed at bringing the deficit down to 5% (as opposed to an estimated 6.4% without these consolidation measures).
The scale of this effort is unprecedented outside of post-crisis recovery periods.
This raises significant credibility questions, particularly given that: Continue reading...
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