French Borrowing Costs Surge to 5%, Eurozone Debt Crisis Fears Rise

French 10-year yields have jumped to 5%, widening the French-German spread to its largest since 2011 and triggering concerns of a fresh eurozone debt crisis. The spike reflects market anxiety over France's 43bn-euro budget adjustment and fiscal sustainability. EUR pairs face downside pressure; traders now watch whether the ECB will deploy crisis tools and how contagion risk spreads to peripheral sovereigns.