French bond spread at highest since 2012 as default insurance spikes

Amid rising investor concerns surrounding France's fiscal health leading up to next year's elections, risk premiums on French government bonds have surged to levels not seen since the euro zone debt crisis.

The country grapples with a tough budget situation, prompting plans for a substantial savings initiative aimed at mitigating the increasing budget deficit, which has impacted French banking stocks and the main stock index significantly.