Bank of France Rejects ECB Intervention Amid Budget Crisis
Emmanuel Moulin says France must solve its borrowing cost spikes through domestic policy rather than seeking European Central Bank intervention.
The head of the Bank of France, Emmanuel Moulin, stated Wednesday that France does not currently require intervention from the European Central Bank (ECB) despite a sell-off in the euro and surging borrowing costs. Moulin attributed the spike in rates to France's high budget deficit and political uncertainty surrounding an upcoming budget vote, asserting that the solution lies in domestic policy rather than in Frankfurt.
Moulin emphasized that the ECB's primary mission is fighting inflation and that the bank is not there to respond to the budgetary problems of individual countries. This position contrasts with far-right leader Marine Le Pen, who argued that France should seek ECB intervention to ease its borrowing costs.
The economic pressure follows the October 1 presentation of a 2027 budget bill by Prime Minister Sebastien Lecornu. The government aims to reduce the budget deficit from 5.4% of economic output this year to 5% by 2027. Lecornu faces significant pressure from far-right and far-left opposition parties ahead of the early 2027 presidential election, continuing a period of instability that saw his two predecessors toppled over budget disputes in 2024 and 2025.
