France's latest debt warning lays bare a country where governance is breaking down

France's debt at 119% of GDP, a post-war record, with a 2027 budget stalled by political gridlock and Moody's flagging unrest as a constraint on consolidation. The absence of credible fiscal adjustment keeps upward pressure on French OAT spreads and weighs on the euro, while raising the risk of rating actions. Near-term market impact is modest but reinforces a fragile European rates backdrop.