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Rates Spark: French problems; politics and PMIs

The article from ING Think discusses the economic and political challenges facing France, particularly in light of recent interest rate hikes by the European Central Bank (ECB). It highlights how these rate increases are exacerbating France's economic issues, including a slowdown in economic activity as reflected by declining PMI figures. The article points out that France's political landscape is also becoming more volatile, with President Macron's government facing difficulties in passing reforms due to public discontent over economic conditions and pension reforms. This unrest is compounded by the broader European context where high inflation and energy prices are straining economies. The piece also touches on the potential for increased borrowing costs to impact France's already high public debt, suggesting that these factors could lead to a more challenging economic environment in the near future. Additionally, it notes the implications for the Eurozone, where France's economic health is crucial, and discusses how these domestic issues might influence the broader European economic stability.

Read the Full think Article at [ https://think.ing.com/articles/rates-spark-french-problems-politics-and-pmis/ ]