The French government is on the brink of collapse. The political crisis has sparked a double hit to stocks and bonds. The risk premium on government bonds is even higher than that of Greece.

According to the ZhuTong Financial APP, French Prime Minister Franois Beru has proposed a vote of confidence against the government, which may face a possible downfall as early as next month. This news has triggered a selling wave of French assets, as investors are rushing to hedge against the increased political uncertainty risk.