{"id":361366,"date":"2025-08-21T06:17:18","date_gmt":"2025-08-21T06:17:18","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/361366\/"},"modified":"2025-08-21T06:17:18","modified_gmt":"2025-08-21T06:17:18","slug":"france-faces-prospect-of-paying-higher-borrowing-costs-than-italy","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/361366\/","title":{"rendered":"France faces prospect of paying higher borrowing costs than Italy"},"content":{"rendered":"<p>                         <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/08\/bbf1918_upload-1-4srrdfmuihya-063-2220488031.jpg\" alt=\"French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni in Kananaskis, Canada, June 16, 2025.\"   width=\"664\" height=\"443\"\/>    French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni in Kananaskis, Canada, June 16, 2025.  CHIP SOMODEVILLA\/GETTY IMAGES VIA AFP                 <\/p>\n<p class=\"article__paragraph  \">As hard as it may be to take for France, many investors no longer have any doubt: Prime Minister Giorgia Meloni&#8217;s Italy is now just as credible when it comes to public finances, if not more so.<\/p>\n<p class=\"article__paragraph  \">&#8220;Once at the bottom of the class in the European Union in terms of budget discipline, Italy is now in a position to give lessons to France,&#8221; said independent economist Philippe Crevel in an analysis published at the end of July. Some observers see Italy, now led by the far right, as a model of fiscal discipline for its neighbor.<\/p>\n<p class=\"article__paragraph  \">The numbers most symbolic of the reversal are the interest rates that investors demand in exchange for holding the two countries&#8217; public debt. In 2011 and 2012, Italy was seen as so turbulent and unreliable that investors insisted on a premium of up to 400 basis points (4%) over French rates. When France paid 3% annual interest, Italy had to pay 7%. Since then, the risk premium has shrunk dramatically, dropping to less than five basis points for the main benchmark with a 10-year repayment period on August 15, a rate unprecedented since 2005. For five-year bonds, the gap between French and Italian debt on financial markets disappeared entirely in mid-July.<\/p>\n<p class=\"reading-mode-only \"><strong>You have 84.2% of this article left to read. The rest is for subscribers only.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni in Kananaskis, Canada, June 16, 2025. CHIP SOMODEVILLA\/GETTY&hellip;\n","protected":false},"author":2,"featured_media":361367,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5309],"tags":[2000,299,36],"class_list":{"0":"post-361366","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-france","8":"tag-eu","9":"tag-europe","10":"tag-france"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115065300218973647","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/361366","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=361366"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/361366\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/361367"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=361366"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=361366"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=361366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}