French turmoil triggers eurozone debt crisis warning from Goldman Sachs
Goldman Sachs has warned the eurozone faces a renewed debt crisis as France's political turmoil and riots drive up government borrowing costs.
France's political chaos and riots are reviving fears of a European debt crisis similar to the turmoil in 2010 that pushed countries toward bankruptcy. French 10-year government bond yields jumped from 4.80 per cent to 4.89 per cent after two days of unrest, as investors demand higher returns to hold the country's debt.
Goldman Sachs warned the eurozone could face a renewed debt crisis. France's presidential election is set for April 2027, with rival far-right and far-left parties competing for power.
The country is already struggling with high debt and budget deficits. Economist Chris Watling from Longview Economics said France faces structural problems but the European Central Bank has tools to manage the spread.
Most eurozone countries now carry far higher debt levels than they did in 2010, when Ireland, Greece and Portugal were forced to seek emergency bailout funding.
- 4.80 to 4.89 per cent
- Bond yield jump
- April 2027
- Election date
- Greece, Ireland, Portugal
- Previous crisis bailouts
- Goldman Sachs
- Warning analyst
Why it mattersEurozone debt crises trigger global economic slowdowns. The 2010 crisis forced Greece, Ireland, and Portugal into emergency bailouts and years of austerity.
AustraliaAustralian investors hold European assets, and a debt crisis would hit their returns. The Australian dollar has also strengthened 12.2 per cent against the euro in a year, making European holidays cheaper but exports to Europe less competitive.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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