Lagarde Rejects French Debt Plan
ECB President Christine Lagarde rejected a French political plan to cancel national debt. She called the proposal financially dangerous and barred under EU law.
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European Central Bank President Christine Lagarde rejected a proposal by France's far-left leader to cancel 18% of national debt, calling the plan legally impossible and financially dangerous. The proposal emerged as France's debt burden topped 116% of economic output, with the plan aiming to free up funds for social spending. Lagarde warned that bond markets would punish such a default maneuver with soaring borrowing costs.
