France is fundamentally solid and can deal with challenges, senior euro zone official says
EWG•A senior euro zone official said France is a fundamentally solid economy capable of handling its challenges, with no contagion so far from rising French bond yields to other euro zone economies.
1. No contagion seen
A senior euro zone official said there was no sign so far that rising French bond yields had spread to other euro zone economies. The official said French treasury yields were responding to news from Paris and that the market reactions were understandable.
2. Call for responsible budgets
The official described France’s economy and financial system as fundamentally solid and said the country had capacity to tackle its challenges. The official said France’s political system needs to find an equilibrium that allows it to deliver responsible budgets year after year.
