French economy sounds the alarm as prices, stock market, and government bonds all thrown into disarray.

Recently, France's troubles seem to have all surfaced at once. Since the 17th of this month, large-scale protests have broken out in many parts of France, and serious violent clashes have occurred in some areas. Prices are rising, government bond yields have soared amid sell-offs, and the stock market is also under pressure. What on earth is wrong with the French economy? The French government has long been spending beyond its means, and the gap can only be filled by borrowing. Official data show that as of the end of June this year, France's public debt reached 119% of GDP, the highest level in 80 years. What the market worries about most is: how much more will France need to borrow? And will it be able to repay it in the future? This concern is directly reflected in borrowing costs. French government bonds have recently been continuously sold off, with the 10-year bond yield briefly breaking through 5% this week and reaching as high as around 5.14%, something unseen since 2002. Several authoritative institutions have pointed out that if France wants to escape its current predicament, in the short term it needs to come up with a credible fiscal consolidation plan to rebuild market confidence. In the long term, it will still have to rely on economic growth for momentum. But this is not easy to achieve. The French government has already lowered this year's economic growth forecast from the previously already low 0.7% to 0.5%, marking the third time the French government has cut its full-year growth forecast this year.