{"id":80958,"date":"2025-08-19T22:24:09","date_gmt":"2025-08-19T22:24:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/80958\/"},"modified":"2025-08-19T22:24:09","modified_gmt":"2025-08-19T22:24:09","slug":"france-faces-prospect-of-paying-higher-borrowing-costs-than-italy","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/80958\/","title":{"rendered":"France faces prospect of paying higher borrowing costs than Italy"},"content":{"rendered":"<p>                         <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/08\/bbf1918_upload-1-4srrdfmuihya-063-2220488031.jpg\" alt=\"French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni in Kananaskis, Canada, June 16, 2025.\"   width=\"664\" height=\"443\"\/>    French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni in Kananaskis, Canada, June 16, 2025.  CHIP SOMODEVILLA\/GETTY IMAGES VIA AFP                 <\/p>\n<p class=\"article__paragraph  \">As hard as it may be to take for France, many investors no longer have any doubt: Prime Minister Giorgia Meloni&#8217;s Italy is now just as credible when it comes to public finances, if not more so.<\/p>\n<p class=\"article__paragraph  \">&#8220;Once at the bottom of the class in the European Union in terms of budget discipline, Italy is now in a position to give lessons to France,&#8221; said independent economist Philippe Crevel in an analysis published at the end of July. Some observers see Italy, now led by the far right, as a model of fiscal discipline for its neighbor.<\/p>\n<p class=\"article__paragraph  \">The numbers most symbolic of the reversal are the interest rates that investors demand in exchange for holding the two countries&#8217; public debt. In 2011 and 2012, Italy was seen as so turbulent and unreliable that investors insisted on a premium of up to 400 basis points (4%) over French rates. When France paid 3% annual interest, Italy had to pay 7%. Since then, the risk premium has shrunk dramatically, dropping to less than five basis points for the main benchmark with a 10-year repayment period on August 15, a rate unprecedented since 2005. For five-year bonds, the gap between French and Italian debt on financial markets disappeared entirely in mid-July.<\/p>\n<p class=\"reading-mode-only \">You have 84.2% of this article left to read. The rest is for subscribers only.<\/p>\n","protected":false},"excerpt":{"rendered":"French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni in Kananaskis, Canada, June 16, 2025. CHIP SOMODEVILLA\/GETTY&hellip;\n","protected":false},"author":2,"featured_media":80959,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-80958","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/80958","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=80958"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/80958\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/80959"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=80958"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=80958"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=80958"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}