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French central banker: France alone must solve fiscal problems - Finance news and analysis from Global Banking & Finance Review
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French central banker: France alone must solve fiscal problems

Published by Global Banking & Finance Review

Posted on November 4, 2026

1 min read

· Last updated: November 4, 2026

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France Urged to Solve Fiscal Issues Without Relying on European Central Bank

France's Fiscal Challenges and the Role of Domestic Policy

PARIS, Nov 4 (Reuters) - France can begin solving its fiscal problems by passing a budget, rather than expecting some sort of solution from the European Central Bank, Bank of France Governor Emmanuel Moulin said on Wednesday.

Political Uncertainty and Bond Risk Premium

Moulin said political uncertainty was contributing to pressure on French bond's risk premium, which could be resolved by passing the 2027 budget as a first step.

Domestic Solutions Over External Reliance

"The solution to France's problems are in France," Moulin told a finance conference in Paris organised by Deloitte, adding the government had the means to force the budget through France's divided parliament if needed.

Conference and Reporting Details

(Reporting by Leigh Thomas;Editing by Sudip Kar-Gupta)

Key Takeaways

  • Moulin warned that delaying the 2027 budget fuels political uncertainty, raising France’s borrowing costs and bond risk premium, now at euro‑era highs (banque-france.fr).
  • He asserted the ECB’s mandate is fighting inflation—not fixing national budgets—and that solutions must come from domestic fiscal consolidation, through spending cuts or revenue increases (live.euronext.com).
  • External actors like Euro‑zone ministers and financial markets also urge France to adopt its 2027 budget to restore confidence, as investor unease has pushed yields to multi‑decade highs near 5% (investing.com).

References

Frequently Asked Questions

What did the Bank of France Governor say about fiscal problems?
Governor Emmanuel Moulin stated that France should solve its fiscal problems internally by passing a budget, not relying on the European Central Bank.
What solution did Moulin propose for France's budget issues?
Moulin suggested that the government has the means to force the budget through the divided parliament if necessary.
Where did Governor Moulin make his remarks?
He spoke at a finance conference in Paris organized by Deloitte.

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