French Economy: France borrows at record low rates

France borrowed about 8 billion euros ($10.6 billion) at record low rates on Thursday, the country's debt agency said, in its first long term bond auction of 2013 in a sign that investors are still looking past a fragile French economy and recent downgrades by credit agencies.

The sale continued a particularly good stretch seen by the government in 2012 when France borrowed at rates lower than ever, despite slowing growth and the country's loss of its top notch rating from agencies Standard & Poor's and Moody's.

"For the benchmark 10-year debt that is of particular interest, the French rates continue their downward trend," said Rene Defossez, bond strategist at Natixis.

The agency said it sold 3.53 billion euros in bonds to mature in October 2022 at an average rate of 2.07 percent, down from 2.22 percent at a similar sale in October.
This was the lowest rate on record paid by France paid for 10-year debt.

Read more: France borrows at record low rates - FRANCE 24

EU leaders search for way to keep a lid on euro crisis

The hotly-contested issue of eurobonds is likely to top the agenda at a summit of EU leaders in Brussels on Wednesday, with German Chancellor Angela Merkel maintaining her objection to them. 

The Organization for Economic Cooperation and Development did a good job explaining what's at stake at the European Union summit with Tuesday's report that said a eurozone recession is the single biggest threat to the global economy.

It will be no trifling task, then, for the 27 EU leaders gathering today, Wednesday, in Brussels to come up with ways to keep the debt crisis the bloc is facing from spiralling out of control, all while attempting to create jobs and boost the economy.

Following a European drive of austerity that was led by France and Germany over the past several months, Europe may now look toward policies that promote growth - a transition that will not likely be smooth.

One item of contention among the EU leaders is the idea of eurobonds, which would be jointly issued and could protect debt-laden countries like Spain or Italy by shielding them from high borrowing rates.

Read more: EU leaders search for way to keep a lid on euro crisis | News | DW.DE | 23.05.2012