Euro Under Pressure as France's Fiscal Woes Mount
The Euro has been trading lower against its major currency peers due to growing concerns over France's fiscal situation.
Bond yields in France have reached their highest level since 2002 at 4.96% amid mounting worries about the country's public debt, which now stands at 119% of Gross Domestic Product (GDP).
France aims to reduce its budget deficit from a target of 5% of economic output next year to the European Union limit of 3% by 2029. However, market experts are skeptical that the minority government in France will be able to pass the budget without concessions.
According to Brown Brothers Harriman's (BBH) Elias Haddad, 'we doubt the proposal will clear parliament without significant concessions,' highlighting the political hurdles to meaningful consolidation.