Citadel executive Angel Ubide said market pressure leaves France no room for fiscal mistakes as it tries to rein in spending. French 10-year bond yields briefly topped 5% last week, a 24-year high.
Angel Ubide, head of Economic Research for Fixed Income & Macro at Citadel, said France has no room for mistakes as it works to get its public finances in order. He said pressure from financial markets should help focus policymakers on reining in spending ahead of next year's presidential election.
Ubide said France does not pose a systemic risk to Europe yet, adding that a parliamentary majority capable of reining in public finances would be important. France's 10-year bond yield briefly rose above 5% last week, its highest level in 24 years. The euro fell below $1.12 on Monday, a 17-month low.
Far-right presidential frontrunner Marine Le Pen said she would seek €140 billion ($157.6 billion) in budget savings over a five-year presidency and use a referendum to enshrine deficit reduction in the constitution. Economists questioned whether cuts of that scale could be achieved, particularly as she gave few details about plans to reduce the retirement age for some workers.
