France’s political crisis is impacting financial markets as borrowing costs reach the same level as Greece’s, with the spread between French and Greek 10-year government bond yields reduced to zero. Prime Minister Michel Barnier’s government is facing opposition to its budget plan, which aims to cut spending and raise taxes to address France’s budget deficit, leading to threats of a no-confidence vote from both the left-wing New Popular Front alliance and the far-right National Rally. This political turmoil is causing uncertainty and could potentially result in the government’s downfall.
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