France-Germany spread breaks 150 basis points again! Street protests demand better livelihoods, bond market urges France to deliver on deficit reduction.

According to the Zhitong Finance APP, European Central Bank Governing Council member and Bank of Finland Governor Olli Rehn stated that, affected by both rising global long-term government bond yields and the country's specific fiscal crisis, the yield spread between French government bonds and German government bonds has continued to "widen somewhat." Rehn emphasized that expanded private investment such as AI and government deficits are jointly increasing capital demand; France additionally faces the risk of budget consolidation being blocked. The latest remarks by this ECB Governing Council member also highlight that the French bond market is simultaneously bearing rising global financing costs and a re-evaluation of the country's fiscal credit, and France is very likely to be the strongest flashpoint for triggering a new round of the European debt crisis.