
Bloomberg Talks Lionel Laurent And Marcus Ashworth Talk France's Deepening Crisis
Oct 7, 2025
Lionel Laurent, an opinion columnist at Bloomberg, joins Marcus Ashworth to dive into France's escalating political crisis under President Macron. They explore the government’s struggle to address its unprecedented budget deficit, which is alarming investors. Laurent discusses the likelihood of snap elections and how growing uncertainty may impact investor confidence. They also examine the far-right’s potential rise and its implications for markets. Amidst public discontent, the conversation highlights the precarious state of French politics.
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Snap Elections As Political Leverage
- Macron has pushed snap parliamentary elections onto the table as a last-ditch lever to force alignment in parliament.
- The 48-hour ultimatum raises the probability of early elections and reshapes party choices around that question.
Slow Burn In The Bond Market
- Markets are slowly losing appetite for French debt, reflected in widening OAT-Bund spreads.
- Investors avoid reinvesting in France rather than aggressively selling, creating a gradual outflow risk.
Reforms Are France's Investor Pillars
- Macron's reforms (stable tax policy and pension changes) underpin France's investor credibility.
- If those planks are reversed by a new government, France risks a worse fiscal profile and lost investor trust.

