France's brewing political crisis is spilling into financial markets with French borrowing costs hitting the same level as debt-ridden Greece's for the first time.

Borrowing costs for France hit a 12-year high relative to Germany, and were equal to those of Greece for the first time ever

France is in the midst of a political impasse which could lead to a vote of no confidence and derail Emmanuel Macron's plans.

French borrowing costs effectively matched those of Greece on Thursday for the first time, as Michel Barnier's government teetered on the brink of collapse, underlining a dramatic shift in how lenders view the creditworthiness of euro zone members.

Borrowing costs for France have hit a 12-year high relative to Germany, and were more than those of Greece for the first time ever