France fiscal crisis pressures eurozone bonds; Greece exposed to contagion risk

A generalized international debt crisis is developing, with European bond markets under pressure driven by France's socio-economic crisis. France, the eurozone's second-largest economy, is implementing austerity measures with 45 billion euros in cuts this year to reduce its deficit below 5.4% of GDP, but its 10-year borrowing rate has risen to 5%. Greece, with its own debt vulnerabilities, faces potential contagion as market stress spreads.