well this is bad news for the economy everybody is reminded that the political scene in France is fragmented it's unstable that we do not have a government in France that could get things done for the time being and there is no obvious solution inside the likely result will be a dampener to business investment a dampener to the already somewhat subu growth prospects of France when France had a stable government under macron France often outperformed the Euro Zone economy because of the reforms which mro had pushed through but now France is probably in for a period where it will underperform economic growth in the remainder of the Euro Zone due to this political situation hul I ask you about the French Bond then uh was in the spread with the German bu at around a 12year High um some a lot of people have talked to say a lot of the B news has been priced in already do you expect to see a second leg up there potentially for French spreads uh going forward there is a likelihood that the spread will widen a bit further over time but this is probably not anything for an immediate crisis after all France is a stable country in the sense it has a president who can act will nominate a new prime minister the fiscal situation is bad but it's not desperate there is no risk at all of France leaving the Euro or the EU even Marine the pen does not want that so I think this is more a story for the growth prospects of France which of course being dimmed will also mean that the borrowing needs of France are going up so I think this is more a case where the spread will widen a bit further on Trend yes that's quite possible but not where we are in for dramatic immediate financial crisis and of course we've come to this vote of no confidence after the negotiations on the budget and the question of tackling the the deficit above 6% this year they were're trying to bring it back to 5% uh next year so what does that mean what can we expect for the next government would anyone be able to negotiate with the different parties to try to bring some of these reforms some of these measures to try to bring back the deficit do you think it's going to be an impossible game now I don't think it's impossible but the likely outcome will be that eventually a new prime minister will be negociate a budget that is less ambitious probably significantly less ambitious than the one which B had planned he was really quite ambitious if he had succeeded that would probably have served to correct the FR Frances ultimately not sustainable fiscal cause but with a less abitious budget France will probably still be able to mle through for quite a while after all the debt level is rising yes but it's not at a a level where I think that Bond investors would really really absolutely shy away from it and if we don't look at the spread if we look at the overall level of years we have to say that is not that high that we would have to say it's um unbearable for France France is going in the wrong direction clearly now but it is still a significant economy which had made serious progress under President macron until he C naap election and as a I don't think there will be sort of a generally Market Panic near to okay hogo just finally what is the risk here for risk assets if we fail to see a new government being formed quickly as Charlotte was just explaining this could potentially take some time macron took his time in choosing barer but of course time is of the essence so is that something that investors need to be watching yes of course if this breaks out for very long that would be negative but I think the real negative is doubts about the ability of Europe to react to Trump we do have president macron but he does not control the pur string for instance it would be very good for Europe France Germany and other countries to raise military spending as a response to Trump so hopefully to have Trump on board with a solution for Ukraine that is good for Europe rather than bad for Europe so this possibility this lack of ability to react re to Trump with fiscal measurers including more military spending is something that is a significant concern for me but I don't think it is sort of a reason for an immediate dramatic financial crisis in Europe of in France