Euro falls to 17-month low against dollar amid French debt fears - The Guardian
Euro falls to 17-month low against dollar amid French debt fears - The Guardian
Source: The Guardian
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DW NOTE
France's fiscal accounts are terminal, not troubled. The country ran a 5.5% deficit in 2023, breached EU limits for the seventh consecutive year, and now carries debt-to-GDP above 110%. The ECB can't let French yields blow out without triggering contagion across the periphery, but it also can't restart QE without admitting its tightening cycle was theatre. The euro at 17-month lows isn't a French problem — it's the market pricing what happens when your second-largest economy is structurally insolvent and your only policy tool is pretending otherwise.