Paris Stock Exchange falls below 8,000 points amid fiscal uncertainty

The Paris Stock Exchange has fallen below the 8,000-point mark, with the CAC 40 declining 0.89% to 7,964.51 points. This downturn is driven by growing investor uncertainty regarding France's political and economic stability ahead of the government's 2027 budget presentation.

Simultaneously, French debt interest rates are rising, approaching levels not seen since 2008. Prime Minister Sébastien Lecornu has warned of potential financial crisis risks while attempting to dissuade opposition parties from a vote of no confidence, given the current lack of a majority in the National Assembly.

Government officials have indicated intentions to significantly reduce the Social Security deficit by 2027. However, economists suggest that while a credible budget might offer temporary relief, it may not resolve the country's underlying structural fiscal issues.