France faces debt sell-off as protests raise fears of populist spending

France braces for a fresh sell-off in government debt after violent protests erupted nationwide, with economists warning that soaring borrowing costs could strain public finances and fuel support for populist candidates. Bond yields are expected to rise Monday, potentially surging by 0.1 percentage points to their highest level in decades, according to Capital Economics. Over 1,800 people have been arrested amid riots, with cars set on fire and a city hall destroyed, following student demonstrations that merged with cost-of-living protests. The unrest complicates France's efforts to pass a €54bn savings budget, as the country runs a deficit above 5pc and debt near 120pc of GDP. Political polarisation is growing, with Marine Le Pen and Jean-Luc Melenchon gaining momentum ahead of spring presidential elections, raising fears of market turbulence similar to the UK's Liz Truss crisis.