"It" is the potential for the recent European debt miseries spreading to France. As Reuters notes, the principal concern is that France is heavily involved in the finances of Italy.
France came under heavy fire on global markets on Tuesday, reflecting fears that the euro zone's second biggest economy is being sucked into a spiralling debt crisis.
Global stocks and the euro fell as Italian bond yields climbed back to unsustainable levels on doubts that Italy's Mario Monti and new Greek leader Lucas Papademos, unelected technocrats without a domestic political base, can impose tough austerity measures and economic reform.The Guardian adds that France's recent decline in its perceived financial stability is adding to the fears that it will face its own debt crisis.
Analysts said the overall health of the French economy ranked only one place above Italy, and below several countries often mentioned as being near to bankruptcy, including Spain and Ireland.
The report by the Brussels-based thinktank the Lisbon Council came as fund managers warned that confidence was quickly evaporating in France's ability to deal with growing government debts and potential bad loans held by its banks.As is the case in the United States, any issues pertaining to an economy in trouble weighs on the upcoming presidential election. However, French president Nicolas Sarkozy is enjoying a favorable reaction from the French public for the way he is handling the crisis.
Whether that remains the case if France spins deeper into potential default...well, I think we know that answer.