Italy pays its debt less than France, a “slap in the face for Macron”

It's only a tiny 0.2%, but it makes all the difference. On Friday, July 4, for the first time since 2005, the yield on five-year government bonds fell below that of French bonds. The former stood at 2.65%, compared to 2.67% for the latter. In a way, this means that investing in Italian Treasury bonds is considered less risky than investing in French bonds, hence the slightly lower interest rate offered to investors.

Concretely, as announced by the French Minister of Economy, Éric Lombard, this also means that from now on, on the financial markets, "France is borrowing at higher rates than Italy." This is the first time in twenty years, which can be explained by both economic and political factors, analyzes Corriere della Sera .

“The perception of financial markets is reversing , "believes this centrist media outlet. If for years Italy's enormous public debt made it the 'sick man of Europe,' now it appears to be under control, unlike that of France, which worries observers."

For the Milanese media, this change of perception in the financial markets is the consequence of a political trend, because if, in the past, "Italy was seen as a country in the grip of permanent instability" , From now on, Giorgia Meloni's government seems well on its way to remaining in place until the end of the legislature, in October 2027. On the contrary, "France is suffering the consequences of a political situation without a clear majority, which prevents it from carrying out reforms that should no longer be delayed" , denounces the Milanese daily, which speaks of a country “immobile, despite Macron’s international prominence” . As a result, investors now seem more inclined to invest in Italian bonds than French ones.

In reality, the comparison between the yields of five-year Italian and French bonds does not tell the whole story, since as far as ten-year bonds are concerned, Paris is still ahead of Rome, with 3.27% against 3.47%.

Here too, however, “the difference between the two yields has never been so low since 2007,” observes La Verità , which sees this as “the beginning of a new era, where the differences between Northern and Southern Europe would be more attenuated.” In any case, concludes, satisfied, this right-wing media outlet, often hostile to France, the news on five-year interest rates “is a slap in the face for Macron.”