Bank of France head says no ECB help needed now despite economic strain
Emmanuel Moulin, head of the Bank of France, said on Wednesday that France does not currently need European Central Bank intervention despite serious economic conditions. He argued the solution lies in passing a budget to cut the deficit, as borrowing costs surge and the euro selloff continues.
The head of the Bank of France, Emmanuel Moulin, said on Wednesday that the country's economic situation is serious but does not require help from the European Central Bank (ECB) at this stage.
"I do not think that the European Central Bank needs to intervene as of now, given the current conditions," Moulin told France Inter radio.
"Today, there is no need to seek the solution in Frankfurt, the solution is here at home," added Moulin, arguing France could tackle its problems by voting through a budget that targeted cutting the country's deficit.
France's borrowing costs have surged in the current global bond rout, prompting a selloff in the euro, as investors worry the country's fragile public finances risk spilling over to the rest of Europe.
The French government presented its 2027 budget bill on October 1. Prime Minister Sebastien Lecornu's government, which faces pressure from both the far-right and far-left opposition parties, aims to reduce the budget deficit from 5.4 per cent of economic output this year to 5 per cent in 2027.