France is facing a growing crisis of confidence in its public finances. Its borrowing costs have reached their highest level in more than two decades. Investors now demand higher yields on French government bonds than on Italian or Greek ones. With public debt nearing 120 percent of gross domestic product (GDP) and a deficit above 5 percent, the government is under pressure to rein in spending. With parliament deeply divided and a presidential election approaching, agreeing on a solution is proving difficult. The concern now is whether France’s troubles could spread across the Eurozone.
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