Report
Patrick Artus

How will France finance its external deficit?

France’s external deficit has gradually deteriorated over the past 20 years and is now at a worrying level. The question of how to finance this external deficit will therefore increasingly arise. If France’s attractiveness for companies is low , international equity or direct investment capital will not flow to France. Given the level of interest rates, international investments in government bonds are discouraged . It is well known that there are no longer any interbank capital flows between euro-zone countries. There is, therefore, a risk that France will run into an external financing problem in the future.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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