France does not need ECB help at present, says Bank of France head
Emmanuel Moulin said France should cut its deficit instead, as the spread between French and German bond yields widened to 109 basis points.
- Bank of France head Emmanuel Moulin stated on Wednesday that France does not need European Central Bank intervention, asserting current economic conditions do not warrant support from Frankfurt.
- Prime Minister Sebastien Lecornu's government aims to reduce the budget deficit from 5.4% this year to 5% in 2027, following the October 1 budget bill presentation.
- Investors are dumping French bonds, pushing borrowing costs higher compared to German Bunds, while Moulin told the Financial Times that France risks being "strangled by interest rates."
- European Central Bank president Christine Lagarde rejected comparisons to 2008 or 2011 crises, noting that Greece and Ireland restored confidence, suggesting the ECB will intervene only if threats are "existential."
- Under constitutional article 49.3, the government may bypass parliamentary vote via ordinance requiring a 70-day grace period; analysts warn approved plans may fail to stabilize debt, with spreads hovering around 150 basis points.
42 Articles
42 Articles
(Berlin=Yonhap News) Correspondent Kim Gye-yeon = Amid concerns that France's financial crisis could spread to neighboring countries, Eurozone nations...
France's high public debt worries economists and damages investor confidence. Head of Central Bank Moulin wants to get it out of the crisis without the ECB's help.
Forget stocks. The fixed income market became a place of speed and danger.
France's economic situation is serious, in view of the increase in financing costs, but the country does not need the assistance of the European Central Bank (ECB), said on Wednesday the President of the Bank of France (p central bank of the country), Emmanuel Moulin. Exclusive material for subscribers. To have full access, access the link of the subject and register.
Álvaro Santos Pereira argues that "central banks exist to control inflation", at a stage where it is speculated that financial market pressure on France leads the ECB to intervene.
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