Investors believe that France will repay its public debt. Are they right?

Investors continue to believe that France is a core euro-zone country that will always be fiscally solvent: long-term interest rates on French public debt remain low, but the fiscal deficit has exceeded the level that ensures long-term fiscal solvency (calculated with potential growth) since 2008 . So investors believe that France will be able to: Reduce its public spending; Increase its potential growth (increased employment rate and productivity gains). The fact that investors believe this may seem surprising, since neither of these developments has taken place in France since the end of the 1990s.