The shelf life of a croissant

Since Lecornu’s appointment last month, France’s credit rating has been downgraded by two agencies amid concerns that political paralysis will block any fiscal repair. Moody’s will update its assessment on October 24.
Recent indicators suggest that uncertainty is already weighing on the broader economy as households and companies postpone spending and investment.
Politically, Macron is clinging to power while trying to put in designate a Prime Minister to form a government without the far right. The new cabinet unveiled yesterday looked strikingly similar to the previous one — hardly a recipe to overcome deadlock. Deep divisions persist between left and right, and French prime ministers seem to have the shelf life of a croissant.
The market reaction has been immediate: the spread between French and German 10-year bonds has surged to its highest level this year. Investors are clearly demanding a higher premium for holding French debt.
At ECP, we invest in companies, not countries. While politics shape the backdrop, our focus remains on resilient businesses with strong cash flows and global reach — names like Christian Dior, Ipsos, Publicis, Sanofi, or Dassault Aviation.