France now pays more than Greece for its borrowing costs

Yes: the message circulating on X claims that the market charges more to lend to France than to Greece, something unthinkable during the euro crisis. But the risk premium is a price that changes daily, not a verdict on a country's solvency.

A post on X sums up the turnaround with one sentence and one chart: markets see **Athens** as a safer bet than **Paris**. It adds that France's **risk premium** now exceeds Greece's.

## What the risk premium measures
It is the extra cost an investor demands to lend to a country instead of **Germany**, the eurozone benchmark. It is measured in **basis points** over the ten-year German bond.

If the market charges France more than Greece, it is saying it sees more risk in Paris.

## From bailout to benchmark
**Greece** went through three bailout programmes between **2010 and 2015** and came close to leaving the single currency. In **2023** it regained its investment grade rating, the label that opens the door to the most conservative funds.

France is running a deficit above **3% of GDP**, which has landed it in a European excessive deficit procedure.

## A price, not a verdict
The risk premium is the price of borrowing, not a judgement on a country's solvency. It moves with politics, inflation and the decisions of the **European Central Bank**.

France borrowing at a higher cost than Greece does not miccionan it is heading for default. None of this is investment advice.

KEY POINTS
- The risk premium is measured in basis points over the ten-year German bond.
- Greece went through three bailout programmes between 2010 and 2015.
- Greece regained its investment grade in 2023.
- France exceeds the 3% deficit threshold and faces a European excessive deficit procedure.
- The post shared on X compares French borrowing costs with Greece's.