Bloomberg Surveillance · Friday, September 18, 2026
French Finance Minister Roland Le Maire discusses the widening spread between French and German bonds, attributing it to budgetary issues and announcing a 54 billion euro spending cut for the next year. He acknowledges the deficit will hit 5.4% this year but aims for a reduction to 5% next year, emphasizing the need for fiscal credibility.
“We've seen the sell-off. We've seen yields rise. But in Europe, there is no bigger spread between Germany than France at the moment. There's about almost 100 basis points spread between France and Germany. The bond market is saying that the weak link in the Eurozone economy is France. Is the bond market wrong?”
“Well, yeah, I wouldn't go as far.”
“First, you've said it, and it's important to record it. It's a global story. Rates are on the rise in the U.S., in France, in Germany, Italy, and elsewhere, including Japan. There's a lot of paper being issued at the moment. The U.S., Germany, France. Germany, it's new because they're now spending on defense and the private market as well, hyperscalers and all. So there is a rise in the tide for everyone. There has been a bit of a rise in the spread, as you said, between France and Germany. This is mostly linked with the fact that we have budgetary issues. We are tackling them. We announced yesterday. 54 billion spending cuts for next year. It's a big announcement. It's a big effort. But I think it's important for us to tell the market we are aware of those deficits.”