International Netherlands: France's spending cut plan failing may put pressure on the euro

Jin10 data reported on July 15, analysts from ING stated in a report that if French Prime Minister Borne fails to reduce the budget deficit through spending cuts, the euro may face pressure. Borne is expected to announce a €40 billion spending cut in the fiscal consolidation plan to be released later. We need to closely follow the movements of French government bonds, as a failure of the spending cut plan (similar to the recent situation in the UK) seems likely to harm local fixed income products and the forex market. The recent policy reversal by the UK government on welfare reform has raised new concerns about its fiscal situation, leading to a significant drop in UK government bonds and the pound.