France can't count on ECB to fix debt woes, central bank chief says - Reuters
France can't count on ECB to fix debt woes, central bank chief says - Reuters
Source: Reuters
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DW NOTE
The ECB's chief just confirmed what bond markets already priced: French debt sustainability is Paris's problem, not Frankfurt's. France's deficit runs at 5.5% of GDP with debt at 110% — levels that would have triggered crisis intervention a decade ago. Now the central bank that spent years monetising sovereign borrowing says it won't bail out fiscal indiscipline. Either France cuts spending by €60 billion to meet EU rules, or bond spreads do the cutting for them.