Bank of France Warns Against Melenchon's Debt Cancellation Plan

The Bank of France chief, Emmanuel Moulin, critiques Jean-Luc Melenchon's proposal to cancel a portion of France's national debt as illegal, dangerous, and useless. Moulin argues that the plan would breach treaties, induce inflation, and raise interest rates. Christine Lagarde of the European Central Bank also opposes the proposal.

The chief of the Bank of France, Emmanuel Moulin, has expressed concerns regarding Jean-Luc Melenchon's proposal to cancel a portion of France's national debt. Moulin labeled the plan, proposed by the far-left leader, as 'illegal, dangerous, and useless' during an interview on Friday.

Melenchon, who is campaigning for the French presidency, advocates for canceling 18% of the country's debt, claiming it would free up funds for social spending. However, Moulin warned such actions would violate existing treaties, lead to inflation, and elevate interest rates.

Echoing Moulin's sentiment, Christine Lagarde, President of the European Central Bank and former French economy and finance minister, also denounced the plan, cautioning against its potential repercussions from creditors. The plan, according to Lagarde, would result in punishment from creditors.