Some of the world’s biggest investment houses say the political instability in France has muddied the picture for economic growth and public accounts to the point that they’re struggling to build a constructive investment case.
From AllianzGI to abrdn and Franklin Templeton, these investors are skeptical that a sharp rally in French markets late last week is worth joining. That’s because the lingering political wrangling over next year’s budget is compromising any meaningful attempts to rein in the country’s ballooning deficit — now estimated around 6% of the nation’s annual economic output and double the European Union’s limit.