France does not need ECB help at present, says Bank of France head
Emmanuel Moulin said France should cut its deficit at home, as investors dump bonds and the spread over German Bunds stays elevated.
- 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.
33 Articles
33 Articles
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.
France not facing a debt crisis despite rising yields, analysts say
Despite the recent surge in French borrowing costs that pushed the country’s 10-year bond yield spread with Germany to a level unseen since the euro zone crisis, analysts are urging calm, saying France is not facing a debt crisis but cautioning that future uncertainties remain. “The short answer is no, this is not a debt crisis,” said Stephane Colliac, senior economist at BNP Paribas. France’s effective interest rate is lower than the rising mar…
Forget the US. France has emerged as the financial markets' new worry cloud. The concerns have already sent the euro into a tailspin – and could, in the worst case scenario, trigger a new financial crisis.
The turbulence of the markets places the bank in the political and financial focus. Analysts shuffle from moderation in rate hikes to large-scale intervention
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