Christine Lagarde Rules Out ECB Intervention in France's Fiscal Crisis
Speaking at an event in Bangkok, the European Central Bank president said the solution to France's budget situation must come from Paris first, as ten year bond yields near 5 percent.
European Central Bank President Christine Lagarde played down speculation on Wednesday about ECB intervention in France's budget crisis, speaking at a CNN event in Bangkok. She said some countries were more exposed than others to current pressures, citing France as an example, and stressed that the primary solution had to come from fiscal policy decisions made in Paris.
The remarks come as French public debt nears 120 percent of GDP and the yield on ten year government bonds has climbed to nearly 5 percent, its highest level in more than two decades. France's fiscal situation is being closely watched by markets amid ongoing political tensions in Paris.
Lagarde's term as ECB president is set to end in October 2027. Earlier this year she left open the possibility of an early departure, citing a potential move into French politics, before telling the newspaper Les Echos that she remained committed to her post in the short term, comparing her role to that of a captain who has to stay on board the ship.
