France turmoil branded 'wake up call' over debt - as French borrowing costs hit 24-year high and Carrefour plunges

Updated: 12:01 EDT, 21 October 2026 The boss of Deutsche Bank has warned that turmoil in France is a ‘wake up call’ for all debt-laden countries as a fresh bonds sell-off sent the country’s borrowing costs to a 24-year high.Christian Sewing sounded the alarm over the crisis as yields on ten-year French bonds surged past 5pc for the first time since 2002.Europe’s second biggest economy has come under mounting pressure from investors over recent months as attempts to tackle its soaring debt pile remain stuck in political paralysis.Those concerns have deepened in recent days as riots and looting across the country, sparked by anger over public services and the cost of living, have shown how hard it will be for France to get a grip on its finances.The country continues to count the cost of the rioting, with shares of supermarket giant Carrefour plunging as much as 15pc after it warned the disorder could knock as much as £170m off profits.Deutsche Bank's Sewing told Bloomberg News that he was concerned about the instability and the likelihood that it could continue until presidential elections next year. Riots and looting have spread across France and parts of EuropeVolatility has also spilled over onto the streets – and bond markets – of other European countries, stirring uncomfortable memories of the eurozone debt crisis 15 years ago.On Wednesday, yields on German and Italian ten-year bonds were on the rise too. But France has borne the brunt, with its ten-year borrowing cost hitting 5.02pc, up from 4.92pc on the day and 4.78pc at the end of last week.The spread between French and German bond yields – a measure of the risk premium for investors buying France’s debt – has widened to levels last seen back in 2011.Sewing said: ‘I wouldn’t call it a debt crisis at this point in time, but I think it’s a wake up call in particular for all public financing that budget discipline is key.’The comments came on the same day as official figures showed Britain’s national debt has surged above £3 trillion for the first time ever – and a week ahead of the UK Budget.Bond investors will be closely watching for evidence that Chancellor John Healey has a credible plan to get to grips with the deteriorating public finances.UK bonds – known as gilts – steered clear of the European turmoil on Wednesday, with 10-year yields falling, while the pound received a boost against the euro to rise to as high as €1.945, a fresh 17-month high.