France can’t count on ECB to fix debt woes, central bank chief says - WTVB
France can’t count on ECB to fix debt woes, central bank chief says - WTVB
Source: WTVB
―
DW NOTE
The ECB president is stating the obvious: France's debt-to-GDP ratio is 110%, and the central bank cannot monetize it without violating the treaty it was built to enforce. The Banque de France chief is simply reminding Paris that the institutional architecture of the eurozone does not permit fiscal bailouts via the printing press. France will either cut spending or borrow at rates that reflect the risk — the ECB won't provide a third option.