“Get Your House in Order”: IMF Chief Warns France as Bond Yields Surge

International Monetary Fund Managing Director Kristalina Georgieva has urged France to restore confidence in its public finances as borrowing costs rise. French 10-year bond yields have climbed more than 100 basis points since the start of the year, and investors now demand higher returns on French debt than on Italian bonds. France’s deficit reached 5.1% of GDP last year, and the government is preparing budget negotiations involving tens of billions of euros in fiscal adjustments. Political divisions and student protests are complicating efforts to secure spending cuts.