Eurozone ministers tell France to pass its 2027 budget now as bond sell-off drives yields to 24-year highs

From the Newshound archive · first published 8 October 2026 · last updated 9 October 2026.

Eurozone finance ministers have demanded France pass its 2027 budget to calm markets, after French ten-year bond yields hit their highest level since 2002 and the spread over German debt approached 160 basis points — its widest since the 2012 crisis. The Bank of France governor Emmanuel Moulin admitted the country's economic situation is 'serious' but insisted Paris does not yet need ECB intervention, a statement analysts said only deepened investor alarm.

France must issue a record €340bn in bonds in 2027 to fund spending and refinance Covid-era debt, with its deficit already above its own five per cent target.

Marine Le Pen, eyeing the 2027 presidency, has now pledged to cut €140bn from the French budget — more than three times the €43bn cuts her centrist rivals are proposing.