11:33 - 21.10.2026

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October 21, Fineko/abc.az. Global asset manager Franklin Templeton has warned that the ongoing sell-off in French government bonds risks triggering a Eurozone debt crisis worse than the one that began in Greece.

Sonal Desai, Chief Investment Officer of Franklin Templeton Fixed Income, stated that markets are not truly prepared for a "Eurozone Debt Crisis 2.0," which could prove far more severe if realized. The yield spread between French 10-year bonds and German Bunds recently widened past 1.5 percentage points, reaching its highest level since January 2012. With an economy of €3 trillion and debt around €3.6 trillion, France's debt is more than ten times larger than Greece's during its crisis.

However, analysts note key differences today: France retains an investment-grade rating, European banks possess stronger capital buffers, and the European Central Bank has established enhanced market-stabilization mechanisms.