France plans record bond sale as debt fears grow
The spread between French government bonds and their German equivalents widened after the news, reflecting what investors see as a rising risk premium.
ECB President Christine Lagarde warned that France's debt situation is "serious at 120% of GDP and without a path to lowering it" in an interview with La Croix. Lagarde emphasized the need for a credible budget trajectory and reforms to restore confidence in France's financial system. She noted that the European financial system is more solid now than during the 2008 and 2011 crises, but stressed that France requires concrete steps to address its debt burden.
When asked if she would consider running for French president, Lagarde stated it would not be a good idea. Additionally, she mentioned that if she were to leave her position at the ECB early, it would only be by a few months.
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