The risk premium on French government bonds rose significantly on Tuesday after President Emmanuel Macron announced on the eve of higher social spending.

Markus Frühauf

editor in the economy.

F. A. Z.

The yield spread for ten-year German government bond reached a 0,475 percentage points, the highest level since one and a half years. Macron responded in a televised address to the protests of the yellow West-movement against the tax plans of the government of France to keep for weeks in suspense. So Macron has announced that the minimum wage is 100 euros a month raise. Retired with a pension under € 2000, should be exempt from the tax increases.

Also wants to waive the government on the re-introduction of the wealth tax. “The government’s action in Paris suggest that the government deficit in 2019 is expanding and the financial Position of France is weakening,” said Commerzbank Analyst Rainer Guntermann. The yield on the ten-year bond of France had risen at noon, up to almost 0.75 per cent.