25 billion euro savings plan from Marine Le Pen

In France, far-right presidential candidate Marine Le Pen announced her savings plan, which aims to reduce public expenditures by 25 billion euros a year, with the aim of gaining financial reliability in the environment of the deepening crisis in the government bond market.

France's borrowing costs have climbed to their highest levels since the early 2000s due to the pressure on public finances and political uncertainty ahead of the two-round presidential election to be held on April 18 and May 2.

Leading the race in the polls, Le Pen's spending cut target of 125 billion euros in total reflects her quest to convince markets under budget deficit pressure.

BUSINESS WORLD AND MARKETS ARE FOLLOWING THE DEVELOPMENTS IN PARIS

The far-right leader is struggling to convince a business community worried about European Union skepticism and his promise to reverse the controversial pension reform enacted in 2023.

According to the Reuters agency, after investors exited French assets, the government led by Prime Minister Sébastien Lecornu tried to calm the uneasiness in the markets by announcing the 2027 budget draft, which includes new savings of 43 billion euros.

The fate of the budget in the divided National Assembly seems to depend on the stance of the opposition parties, the largest group of which is the National Rally (RN) led by Le Pen.

Le Pen announced that she will announce the 2027 shadow budget, which will reveal her demands before negotiations in the parliament.

Last year, the National Union demanded in the 2026 budget that France's contribution to the EU budget be reduced, social aid for immigrants be cut, and development aid be cut; Prime Minister Lecornu passed the budget in the parliament with the tacit support of the Socialists.

THE COUNTRY'S BORROWING INTEREST RATES HAVE REACHED THE PEAK

On the other hand, according to data from the AFP agency, the euro fell to its lowest level in the last 17 months against the dollar due to France's budget deficit and high debt burden.

France's public debt is forecast to approach 122 percent of gross domestic product (GDP) next year, despite planned cuts.

The 10-year French bond yield rose to 4.8 percent, its highest level since the 2011 Eurozone debt crisis.

Political uncertainty in Europe increased with Spanish Prime Minister Pedro Sánchez's call for early elections.

The election decision taken after the housing aid bill prepared by Sánchez's minority government was rejected in the parliament fed the volatility in the markets.

The Paris stock exchange fell due to the rise in bond interest rates and the nearly 10 percent loss in Schneider Electric shares, which announced that it would purchase the US-based PTC software company for $ 22.6 billion.