Economy

Political situation in France
Fears of a new debt crisis push the euro to a 17-month low

The euro fell to its lowest level against the dollar in 17 months on Monday, following political developments in Spain and growing concerns regarding France's public finances, news agencies report.

Doubts about France's ability to reduce its budget deficit, combined with last week's sharp rise in interest rates, have sparked fears of a new debt crisis in the eurozone, Reuters reports.

Investors are fleeing French government bonds in favor of safer German ones. The yield spread between the two countries rose on Friday to its highest level since the 2011 eurozone crisis.

"Recent developments in the bond market are becoming increasingly worrying and are somewhat reminiscent of a sovereign debt crisis," Commerzbank strategist Hauke ​​Siemssen told the news agency.

On Monday, Spanish Prime Minister Pedro Sánchez called for a snap election.  

Political implications
Top French economist: "We risk being strangled by interest rates"

France must get a grip on its rising debt, warns the country's central bank chief, Emmanuel Moulin.

The country’s finances have run a deficit every year since 1973. With high public debt and now-rising interest rates, France could find itself in a trap where interest payments widen the budget gap even further.

"If we don't act, there is a real risk that we will be gradually strangled by rising interest rates. We must remain masters of our own destiny," says Moulin.

The Future of the EU
Franco-German proposal: New trade weapon for the EU

The EU needs a new tool to tackle unfair trade practices by third countries, France and Germany state in a joint proposal to the European Commission. According to Reuters, the need arises from the fact that trade has been used as a weapon.

The new tool should be as powerful as the US "Section 301," which can be used to impose punitive tariffs if another country's tariff policy is deemed harmful to the US, says German Trade Minister Katherina Reiche.

Stock Market Today
SpaceX rose 8 percent – ​​Musk’s wealth climbed

Space and technology company SpaceX rose nearly 8 percent to $171 per share, the highest level since the market surge in June when the company was listed.

This also made Elon Musk an American "trillionaire," corresponding to a fortune of just over 10,000 billion Swedish kronor.

On Monday, SpaceX received a positive recommendation from the bank Morgan Stanley, which described the stock as cheap and set a target price of $300. The bank highlighted the space company's success with its latest rocket launch and the upcoming release of new AI products, CNBC reports.
Head of the Debt Office: "Glad I don't work in Italy"

The Swedish state will need to borrow 208 billion kronor next year, according to the latest forecast from the Swedish National Debt Office. Karolina Ekholm, the agency’s Director General, tells *DN* that although it is a large sum, she is not losing any sleep over it, as Sweden’s national debt is low.

“I’m glad I don’t work at the debt management office in Italy or France, because I think I’d find that challenging. The US and the UK probably wouldn’t be much fun either,” she notes.