Why France’s debt burden could exceed 100 billion euros per year

The day before the announcement of the European Central Bank (ECB), this Wednesday, the rate of ten-year French government bonds was trading around 2.1%, very close to the high point of 2.24% in mid-June. The markets are thus anticipating the new rise in key rates from the central bank. The upward trend in rates was rapid. At the end of 2021, French securities were moving into negative territory, which had prompted Bercy to build its budget on a projection, at the time almost conservative, of a rate of 0.75% at the end of 2022.

The new forecast, updated on the occasion of the stability program sent to Brussels this summer, is now 2.5%. According to Bercy, ten-year rates would then continue to climb by 0.1 point per year until 2027 to reach 3% at the end of 2027. A surge that will inevitably have repercussions on the cost of the debt. In the latest budget documents, Bercy indicated that it was counting on a charge of 46.3 billion euros for 2022.due to the impact…