Billions wiped off value of French banks - government on verge of collapse

French banking giants BNP Paribas and Societe Generale saw billions of euros wiped off their market value on Tuesday as the government of the eurozone’s number-two economy was set for collapse.

Prime Minister Francois Bayrou on Monday said he would seek parliamentary authority for his austerity plans on Sept. 8., which analysts say he is unlikely to win.

“The numbers don’t look good in that his centrist party has 210 seats in parliament, while the far left and the far right have a combined 330 seats and have already said they will vote no,” said Chris Turner, global head of markets at ING.

Steve Goldstein MarketWatch Aug. 26, 2025

https://www.marketwatch.com/story/billions-wiped-off-value-of-french-banks-with-bayrou-led-government-on-verge-of-collapse-b6ef0d84


French public debt will rise to 115.5pc of GDP this year. 

The gap with Germany is growing ever wider, which raises a question: how far can the two anchor economies of the euro diverge before monetary union becomes untenable

Ambrose Evans-Pritchard Telegraph 6 February 2025

 

French Premier Survives No-Confidence Vote

A deficit of 5.4% next year. 

European Union rules require member states’ debt to be below 60% of GDP and a deficit under 3%.

https://englundmacro.blogspot.com/2025/02/macrons-france-finally-passes-budget.html




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