Arabic version: الاضطرابات في فرنسا تثير مخاوف بشأن المالية العامة والنمو

According to Cnbc, unrest in France is increasing investor concerns about public finances, growth and the government’s ability to deliver planned budget savings. Benchmark 10-year French government bond yields rose 11 basis points on Thursday to their highest level since 2002, while the spread over 10-year German Bunds reached its widest level since November 2011.

Moody’s kept France’s Aa3 sovereign credit rating, which it considers “high grade,” while retaining a negative outlook. The agency said the outlook reflects the risk that political fragmentation will continue to impair legislative institutions. It said the outlook could return to stable if institutions can narrow the budget deficit.

The government aims to reduce its deficit to 5% of GDP in 2027 from a projected 5.4% in 2026. The National Assembly is due to resume debate on budget tax measures on Oct. 27, though opposition lawmakers are resisting the plans. Natixis CIB’s Alain Durré said the government could invoke Article 49.3 or use executive ordinances to pursue fiscal targets.

Further demonstrations are planned for Oct. 24, followed by a union-backed national day of strikes and protests on Nov. 5. ING’s Charlotte de Montpellier said prolonged unrest, weaker confidence or intensified market tensions could further reduce growth forecasts of 0.3% for 2026 and 0.6% for 2027. ING identified retail, hospitality, tourism, transport and logistics as directly exposed sectors. Carrefour shares fell more than 14% Wednesday after it cut its profit outlook and investment, citing unrest and higher energy costs.