# UBS CEO Sergio Ermotti Says France Needs Hard Measures on Debt

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/27071
Published: 2026-10-06T15:21:31.000Z
Updated: 2026-10-06T15:21:31.000Z
Section: Investing

> French 10-year government bond yields were 4.7689% Tuesday afternoon after easing 9 basis points, while the spread over German bonds topped 140 basis points.

UBS CEO Sergio Ermotti said France needs hard measures to restore fiscal credibility, as pressure on its government bonds has made the country a focus of turmoil in European debt markets.

Ermotti said small, incremental changes would not resolve France’s large debt burden. He compared the market turmoil with the eurozone debt crisis of 2011 and said France’s larger economy could make the challenge harder to address.

France’s 10-year government bond yield stood at 4.7689% Tuesday afternoon after easing 9 basis points. Its borrowing costs have risen above those of Greece and Italy as investors weigh the country’s debt, budget deficits, bond supply and political uncertainty ahead of the presidential election.

The spread between French government bonds and German Bunds has moved above 140 basis points. Investors have shifted from French bonds toward the perceived quality of Bunds, widening the gap.

Marine Le Pen, a far-right presidential candidate, pledged large spending cuts Tuesday to bring debt under control and warned that France ultimately risks defaulting on its debt.