Nerve-wracking

It's been a nerve-wracking week, but markets have taken a lot in stride with EGB spreads tightening to their lowest levels since before the sovereign debt crisis. The French government faced a significant setback this week as the National Assembly failed to complete the first reading of the 2026 draft budget before the 24 November deadline. Although not a fatal setback it underscores the growing challenges in meeting fiscal targets before year-end. Meanwhile, Europe scrambled to respond after the US unveiled a 28-point Ukraine-Russia peace plan without consulting Kyiv or EU leaders. A revised 19-point version now is in the works. Putin has signalled conditional openness to the plan. Regardless, Europe may face mounting costs.