Political uncertainty in France is taking a toll on investor confidence in its economy, with French bonds taking a hit, driving the stock market downward and pushing 10-year borrowing costs higher to levels comparable to Greece – a symbolic threshold that has sparked alarm.

Media was sent into a tizzy following a headline grabbing Bloomberg report on Thursday which highlighted that France’s 10 year bond yield briefly reached 3.03% and made the unfavorable comparison that they were as high as Greece’s.

While largely symbolic, the milestone underscores market jitters about France’s political and economic stability, especially as its fragile government struggles to pass its 2025 budget.

Ten-year French bonds are traditionally considered the safest in Europe, but it appears that now they are under scrutiny, according to Bloomberg.  This shift has raised fears about how further political instability in France could ripple across the broader European economy.

Meanwhile, Greece, once the poster child of the Eurozone debt crisis, is on an “upward trajectory.” After the peak of its debt troubles in 2012, Greece has gradually regained economic credibility, culminating in its recovery of investment-grade status in 2023.

France, keen to distance itself from what is considers to be unfair comparisons with Greece, has launched a public relations offensive. Finance Minister Armand told Bloomberg that France’s economy remains “far superior” to Greece’s, but acknowledged the need for greater fiscal discipline.

The truth is that any comparisions between the two countries beyond the rate of 10-year bond yield can only be made on a superficial basis, as the size and dynamics of both economies differ greatly.