French Debt Eyed By Hedge Fund Shortsellers

In the European Union, France is pitched as the weakest link by several investors. Not only is the economy weakening but the public is also gradually losing confidence in the French government. France's debt situation is more dire than both Italy and Spain and this has led to a renewal of short interest in government debt.

Reuters reports that hedge funds are betting on widening bond yields as government fails to drive growth from increased government spending. France faces increasing unemployment numbers and at the same time the government's approval ratings have fallen to...