France fears it's next in line for debt crisis

PARIS - President Nicolas Sarkozy is not ready to admit it, but France has begun to fear that it will be next in the markets' firing line as the debt crisis spreads from Greece and Italy.

The ratings agency Standard and Poor's gave Paris a jolt on Thursday, announcing "in error" it had downgraded France's credit worthiness. It withdrew the statement, but other signs of trouble are mounting.

The "spread" or gap between French and German 10-year bond yields has never been higher, as investors skip over France and invest in its safer neighbor, and the government's borrowing costs are rising.