Part 5/12:
Approximately 50% of French debt is held by foreign investors, including foreign banks, governments, and corporations. This makes France particularly vulnerable because foreign investors are skeptical of holding riskier assets, especially in an unstable economic environment. As risk perceptions increase, these investors start pulling their funds, accelerating the crisis.
In comparison, countries like the United States have only about 30% of their debt held by foreign entities, which provides a buffer against sudden sell-offs. Countries such as Italy and Spain have foreign holdings of 28% and 40%, respectively—lower, but still significant.