French government bond yields are rising and the gap with Italy is narrowing, raising concerns about France's financial stability.

France's long-term borrowing costs are falling in line with Italy's, a significant shift affecting investor sentiment. French 10-year bond yields have risen above 3% amid political instability and rising public debt. Although Italy has shown fiscal discipline, France faces large deficits and rising credit risks. The French prime minister has proposed a fiscal package to avoid a Greek-style crisis, but without a parliamentary majority its adoption is uncertain. France's public debt is projected to reach 118% of GDP by 2026.