France Is Veering Toward a Potential Debt Crisis, a Warning to the World NYT - Business By: Eshe Nelson 8 October 2026 at 12:44 French bond investors are demanding sharply higher interest rates, a cautionary development for other high-debt countries. Β© Tom Nicholson/ReutersFranceβs fiscal turmoil highlights the risks facing heavily indebted governments as borrowing costs rise and public spending on health care, pensions and defense grows.