Europe · Business news · Economy · 05 Oct 2026
EU Financials
The euro dropped to $1.1161 on Monday, its lowest in 17 months. France's 10-year government bond yield rose to 4.917%, close to a 24-year high, and its gap over German bonds reached about 146 basis points after the largest weekly widening in 17 years. Finance minister Roland Lescure presented a 2027 budget that aims to cut the deficit from 5.4% to 5% of GDP. In Spain, prime minister Pedro Sánchez called a general election for November 29 after parliament rejected two housing decrees; Spain's 10-year yield held at 4.07-4.09%.
Sovereign yields set the floor for borrowing costs across the euro area, so French banks, insurers and heavily indebted companies carry the direct exposure: the CAC 40 fell more than 1% while the DAX and Italy's FTSE MIB edged up 0.1-0.3%. ECB president Christine Lagarde called debt near 120% of GDP that is not being brought under control a serious matter, while saying the situation differs from 2008-2011. A weaker euro raises the cost of dollar-priced energy imports while lifting the translated foreign earnings of exporters. Spain's reaction was mild: its bonds trade 65 basis points over Germany's.
Reported by Euronews — “Euro hits 17-month low as French debt fears mount and Spain heads for snap election” ↗ on 05 Oct 2026.
Official series on 05 Oct 2026 or the last day before it, and the latest observation.
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