Emmanuel Moulin, governor of the Bank of France, said the French economy is in a worrying situation but has not yet reached the point of needing help from the European Central Bank, or ECB. In an interview with France Inter radio on October 7, he said that under current circumstances he sees no need for the ECB to intervene, and that France's solution does not lie with the ECB but in fixing its own domestic problems by passing a budget aimed at reducing the deficit. French financial markets are currently under pressure from rising government borrowing costs amid a global bond selloff, while the euro has weakened on investor concerns over France's fragile fiscal position, which could affect other European economies. Meanwhile, the French government submitted its 2027 budget draft to parliament on October 1, with Prime Minister Sébastien Lecornu's government aiming to cut the budget deficit from 5.4% of GDP this year to 5% in 2027. However, the government is under pressure from both the far-right and far-left opposition, leaving the push to control the deficit through the budget uncertain.
Bank of France governor says France need not rely on ECB and the euro has weakened on France's fragile fiscal position, a negative signal for the euro.
